The Israel Capital Market Authority has approved a framework for issuing a shekel-pegged digital currency. The token will be issued by Bits of Gold, a licensed financial asset service provider, under regulatory supervision, Y.Net reported.

Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!).

Stablecoins have moved from a crypto-native instrument to infrastructure used in payments and settlement. Binance Research’s 2025 report puts market capitalisation above $305 billion and daily transaction volumes at $3.54 trillion. It also highlights high circulation velocity and compares usage levels with established global payment networks.

Regulator Backs Shekel Digital Issuance

The authority said the move marks an early stage in a new regulatory phase for digital assets. The activity will remain limited in scope at the start.

It said the decision aligns with government policy on digital assets. It also comes ahead of a draft law on stable digital coins, which will be published for public comment. The approval follows a process lasting about two years. During this time, Bits of Gold ran a pilot to test stablecoin issuance under controlled conditions.

Amit Gal, who is in charge of the authority, said the move supports “technological innovation alongside maintaining financial stability, protecting the public of customers and reducing systemic risks.”

Israel Sandbox Tests Shekel Stablecoin

The pilot was carried out in a regulatory sandbox framework. It was designed to test financial innovation under supervision while limiting risks to the system and the public.

The regulator reviewed issuance, custody of client assets, risk management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term, business continuity, cybersecurity, and compliance with regulatory standards. The currency will be fully backed by the Israeli shekel. It will operate at a 1:1 ratio with reserve assets.

Reserve assets will be held in Israel in segregated accounts. Liquidity and redemption mechanisms will be available at all times. The issuer must maintain reporting obligations, including immediate disclosure of material changes or exceptional events.

The Capital Market Authority said it will continue supervising the company after approval, with ongoing monitoring of compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term with regulatory conditions. Bits of Gold founder and CEO Yuval Rouach described the token as “the bridge between the shekel and the new global financial system.”