Israel Approves BILS Stablecoin Pegged to the Shekel

The token will be backed by reserves held in separate accounts in Israel and is designed to maintain a one-to-one value with the Israeli shekel. Regulators say the approval is part of broader efforts to create clearer crypto rules.

Israel Greenlights New Shekel Stablecoin

Israel’s Capital Market, Insurance and Savings Authority officially approved the launch of BILS, a new shekel-pegged stablecoin developed by the crypto exchange Bits of Gold. The approval follows a two-year pilot program in which the stablecoin operated on the Solana blockchain.

BILS is designed to maintain a one-to-one value with the Israeli shekel, which gives users a digital version of the currency that can be used in blockchain ecosystems. According to the regulator, the stablecoin’s reserve assets will be stored in Israel in designated and separate accounts. This structure is intended to ensure transparency, security, and confidence that every token issued is backed by real funds.

Safeguards like these are especially important in the stablecoin market, where trust in reserves has often been a major concern.

The project also forms part of an effort by Israeli authorities to build clearer regulations for the cryptocurrency industry. By allowing certain stablecoin-related activities under supervision, Israel is positioning itself as more a forward-looking jurisdiction that supports innovation. As a result of this, more fintech companies and blockchain startups could operate in the country.

Bits of Gold founder and CEO Youval Rouach described BILS as a direct bridge between the Israeli shekel and the global digital asset economy. He explained that it could enable real-time payments, on-chain trading, and programmable financial applications using a regulated local currency. In practical terms, this means businesses and people may eventually use BILS for faster transactions, decentralized finance services, and digital commerce without needing to convert into US dollar-based stablecoins.

The global stablecoin market is currently valued at more than $300 billion and is largely dominated by US dollar-pegged coins like Tether’s USDT. The introduction of BILS gives Israel a chance to establish a domestic alternative tied to its own currency.

Shekel vs US dollar performance over the past month (Source: Google Finance)

It also comes at a time when the Israeli shekel is performing strongly after reaching a 30-year high against the US dollar, with one shekel worth around $0.34.