Israel Greenlights Shekel-Backed Stablecoin Following Two-Year Trial
Following a comprehensive two-year testing phase on Solana's blockchain network, Israeli financial authorities have granted approval for the BILS stablecoin developed by local cryptocurrency exchange Bits of Gold.
The Capital Market, Insurance and Savings Authority of Israel has given the green light for virtual currency platform Bits of Gold to introduce a stablecoin pegged to the Israeli shekel.
Through an official statement released on Monday, the regulatory body in Israel announced its approval of the BILS stablecoin following the completion of a two-year experimental phase conducted on the Solana blockchain network.
Based on details provided in the official announcement, reserve assets backing the stablecoin will be maintained within Israel in accounts that are "designated and separate." This initiative represents a component of a broader push by Israel's Finance ministry alongside the Israel Tax Authority to establish regulatory frameworks for the cryptocurrency sector, which includes permitting specific stablecoin operations.
"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,"
Youval Rouach, Bits of Gold founder and CEO
By Monday's figures, the worldwide market capitalization of stablecoins had surpassed $320 billion, with the market being largely controlled by stablecoins tied to the US dollar, such as Tether's USDt (USDT).
The introduction of BILS, representing one of the initial stablecoins pegged to the Israeli shekel, occurred at a time when the national currency reached a three-decade peak versus the US dollar, trading at 1 ILS to 0.34 USD as of publication.
Stablecoin yield under scrutiny in US amid market structure debate
Within the United States, legislative discussions persist regarding elements of a digital asset market structure proposal concerning stablecoin yield, tokenized equities, and ethical questions surrounding potential conflicts of interest between US President Donald Trump and the cryptocurrency industry. The proposed legislation, which has been essentially at a standstill in the US Senate since July 2025, needs to undergo markup by the banking committee of the chamber prior to any potential floor vote.