Israel Discount Bank, the country's fourth-largest bank, is preparing to put Bitcoin in the same app where customers check their balance and pay rent. Starting November 26, 2026, eligible customers will be able to buy, hold, and sell Bitcoin and Ethereum directly through the bank's mobile application, with custody infrastructure supplied by Fireblocks operating behind the scenes. For a banking sector that has spent years keeping crypto at arm's length, the move represents a notable change in posture.

The bank announced the service on November 11, 2026. According to the research findings, it is the first time an Israeli bank has offered direct in-app trading of digital assets.

What Customers Actually Get

Because trading is embedded in the banking app itself, customers no longer need a separate exchange login or a hardware wallet sitting in a drawer. Fireblocks supplies the digital asset infrastructure and wallet custody, holding the private keys on the bank's behalf. Under that arrangement, customers are not required to maintain external crypto wallets of their own, and crypto activity is managed within the bank's existing relationship rather than through separate platforms.

The initial menu is short. Only Bitcoin and Ethereum are supported at launch, which keeps the offering to the two largest and most familiar digital assets.

Eligibility is also clearly defined. The service targets private customers aged 18 and older who hold securities-enabled accounts.

Tax Offsetting Handled at Source

The tax feature could prove central to the appeal of the service. Discount Bank's offering will let clients offset capital gains and losses from their digital asset trades against other investments in their portfolio. Those tax adjustments are handled through deduction at source, meaning digital asset trading is folded into the same tax handling as the rest of a customer's portfolio rather than managed as a separate activity.

The bank is also sweetening the launch. Customers receive a six-month waiver on account management fees, and trading commissions are reported at 2% per trade.

The Race to Be Israel's Crypto Bank

Discount Bank is not alone in eyeing this market; it is simply first through the door. Bank Leumi, one of the country's largest banks, is expected to launch a similar service in early 2027 through its Pepper app, giving Discount Bank a head start measured in weeks to months rather than years. The near-term markers are concrete: the November 26 go-live, the end of the six-month account management fee waiver, and Leumi's expected Pepper debut.

The research findings frame Discount Bank's move as a response to rising demand for digital assets and a bid to challenge unregulated platforms. In that framing, embedding trading inside a supervised banking relationship is itself the differentiator against platforms operating without that oversight.

What It Means

For Fireblocks, the deal is another example of the custody firm acting as the quiet infrastructure layer behind traditional finance's crypto ambitions. Banks generally do not want to build key management from scratch, and outsourcing that function allows them to move faster.

Customers using bank custody will not hold their own keys, however — a structural difference from self-custodied wallets. The asset menu is limited to two coins for now, and the reported 2% commission may matter more as trading volumes grow and the promotional fee waiver expires after six months.

Source: CryptoBriefing