ISRAEL APPROVES FIRST SHEKEL-PEGGED STABLECOIN AFTER TWO-YEAR PILOT

Israel has taken a significant step in digital asset regulation. The Israel Capital Market Authority has given the green light for the country's first shekel-pegged stablecoin, to be issued by licensed crypto firm Bits of Gold (@BitsofGold_LTD). The decision follows a two-year regulatory sandbox process conducted under close supervisory oversight.

The token, known as BILS, is fully backed by and pegged to the New Israeli Shekel (NIS or ILS). Under the approved framework, Bits of Gold must hold collateral in shekels equal to the value of all issued coins, which may be held in cash or other low-risk liquid assets such as short-term government bonds, in line with Bank of Israel guidelines. Coins are issued on demand and "burned" upon redemption, guaranteeing no excess coins remain in circulation.

Regulatory Structure and Obligations

The Capital Market Authority has set out clear operational boundaries for the token's initial phase. Reserves must be held in segregated accounts inside Israel, liquidity and redemption mechanisms must be available at all times, and the issuer faces ongoing reporting obligations, including immediate disclosure of material events. The authority described the move as an early stage in a new regulatory phase for digital assets, with activity intentionally limited in scope at the start.

At launch, private customers will not be able to access the coin, and all issuance, usage, or transfer will occur within a sandbox experimental phase. The approval comes ahead of a draft stablecoin law that the Capital Market Authority plans to publish for public comment.

Bits of Gold founder and CEO Yuval Rouach described BILS as "the bridge between the shekel and the new global financial system." The two-year pilot stress-tested issuance, custody, risk management, cybersecurity, and compliance under supervision. The BILS pilot is based on the Solana blockchain, with Fireblocks contributing its institutional-grade infrastructure to manage the issuance of the currency.

Broader Context: Israel's Digital Asset Agenda

The BILS approval sits within a wider push by Israeli authorities to bring digital assets under a coherent regulatory roof. Israel's digital shekel team has published a 2026 roadmap, with project lead Yoav Soffer calling the planned CBDC "central bank money for everything" and signaling official recommendations may arrive by year's end. Bank of Israel Governor Amir Yaron has also noted that stablecoins are now systemically relevant, pointing to more than $2 trillion in monthly trading volume.

For Bits of Gold, the regulatory milestone marks a decade of operating as a digital currency gateway in Israel. The firm's founder noted that the token would allow anyone with internet access to use the stable shekel to store value and conduct financial transactions, even without a traditional bank account.

Sources:
Finance Magnates – Israel Approves First Shekel-Pegged Stablecoin Framework
CoinDesk – Israel's Central Bank Chief Warns Stablecoins Are Now Systemic
Ynet News – Shekel-pegged digital currency hits the market

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