Israel Clears BILS as First Regulated Shekel Stablecoin After Solana Pilot

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Israel’s Capital Market, Insurance and Savings Authority has approved the issuance of BILS, the country’s first regulated stablecoin pegged to the Israeli shekel. Licensed crypto exchange Bits of Gold will issue the token under close regulatory supervision following a two-year pilot on the Solana blockchain, with reserves held in designated and separate accounts within Israel’s domestic banking system.

Regulator Approves Limited Launch Under Strict Oversight

The authority announced the approval on Monday, clearing the way for a limited launch at a predetermined scale. BILS maintains a 1:1 peg to the shekel, and the regulator imposed conditions covering technology risk management, cybersecurity, business continuity, and ongoing disclosure obligations.

“This is a significant step in developing a modern, innovative and supervised financial market that meets international standards,” said Amit Gal, head of the Capital Market Authority. “It is important for Israel’s continued integration into global financial systems.”

The approval permits on-chain uses including real-time payments, foreign exchange transactions against major stablecoins such as USDC, smart contract execution, and global shekel-denominated transfers.

Bits of Gold Partners With Fireblocks, QEDIT, and Solana to Build BILS

Bits of Gold has operated since 2013 and holds a financial asset service provider license from the Capital Market Authority. The company serves more than 250,000 registered clients and previously launched a crypto rewards credit card with MAX.

BILS was developed in collaboration with Fireblocks for institutional-grade custody and issuance infrastructure, QEDIT for privacy and compliance, and the Solana network. EY provided auditing and professional oversight for the project.

Bits of Gold founder and chief executive Youval Rouach described the token as a bridge between the domestic currency and global digital asset markets.

“BILS creates a direct bridge between the Israeli shekel and the global digital assets economy, enabling real-time payments, on-chain trading, and programmable financial applications based on a regulated local currency,” Rouach said.

Stablecoin Debut Lands as the Shekel Hits a 30-Year High Against the Dollar

The shekel’s approval comes as it is trading at a price close to its 30-year high versus the dollar, at around 1 ILS to 0.34 USD. The global stablecoin market currently exceeds $320 billion in total capitalization, with U.S. dollar-pegged tokens dominating nearly all of it.

A shekel-denominated stablecoin gives Israeli users and institutions a local-currency option that avoids exposure to foreign monetary policy and reduces conversion friction for domestic transactions. Bits of Gold said it plans to expand partnerships with financial institutions and payment providers to integrate BILS into existing systems.

Limited Launch Precedes Broader Stablecoin Legislation

The approval is designed as a stepping stone toward Israel’s forthcoming Stablecoin Law. The regulator said operations can begin immediately alongside the expected publication of a draft bill on stablecoin issuance for public comment.

The initiative is part of a wider effort by the Israel Tax Authority and the Finance Ministry to regulate digital asset activity, including licensing, consumer protection, reserve controls, and anti-money laundering standards. Bits of Gold’s approval is the first to come through under this framework, with the regulator indicating further steps will be taken gradually as the full regulatory structure takes shape.