Israel’s Capital Market Regulator Approves BILS Shekel-Pegged Stablecoin Launch on Solana

Israel’s Capital Market, Insurance and Savings Authority has approved the launch of BILS, a shekel-pegged stablecoin to be issued by Bits of Gold, after a two-year pilot on the Solana blockchain.

“Summary - Israel's regulator has approved the issuance of shekel (ILS)-based stablecoin BILS”

bloomingbit

Multiple outlets tie the decision to a broader regulatory push by Israel’s Finance ministry and Tax Authority, with the project described as bringing stablecoin activity into a regulated framework.

bloomingbit

Cointelegraph reports that “the stablecoin’s reserve assets will be held in Israel in “designated and separate accounts.””

Cryptonews.net similarly says the regulator granted approval after “a two-year pilot program of the stablecoin on the Solana blockchain,” and it repeats the “designated and separate accounts” language.

Finance Magnates frames the approval as a “framework for issuing a shekel-pegged digital currency, BILS,” describing it as an “early stage in a new regulatory phase for digital assets.”

In Israel, ynetnews says the issuance will be “in a limited format and at a predetermined scale,” and it adds that the activity will begin “immediately” alongside a draft bill for public comment.

Across the coverage, the regulator emphasizes supervision and conditions designed to protect public funds and ensure operational stability, with ynetnews describing “close supervision and strict conditions meant to protect public funds and ensure operational stability.”

The approval follows a structured review process that ynetnews says lasted “about two years,” during which Bits of Gold ran a dedicated pilot in a regulatory sandbox.

ynetnews describes the sandbox as “a controlled framework that allows innovative financial products and services to be tested under supervision while reducing risks to the public and the financial system.”

Cointelegraph

It also lists the pilot’s scope, saying it examined “issuing and managing a stablecoin, safeguarding customer assets, managing custody risks, daily operations, business continuity, technology risks, information security, cyber protection and compliance with strict regulatory standards.”

Finance Magnates adds that the regulator reviewed issuance, custody of client assets, risk management, business continuity, cybersecurity, and compliance with regulatory standards, and it says the currency will be “fully backed by the Israeli shekel.”

That same outlet specifies the backing as “It will operate at a 1:1 ratio with reserve assets,” and it repeats that reserve assets will be held in Israel in segregated accounts.

ynetnews also emphasizes the same principle, saying regulators stressed a “full 1:1 backing ratio between the issued coins and reserve assets,” with reserve assets held in Israel in “dedicated and separate accounts.”

In addition to backing, ynetnews says the company must maintain liquidity, offer redemption mechanisms “at all times,” and report immediately to the authority on “any unusual incident or material change in activity.”

The outlets describe BILS as more than a simple peg, positioning it as a bridge between the Israeli shekel and broader digital-asset activity.

“Israel’s Capital Market, Insurance and Savings Authority has greenlit the launch of a shekel-pegged stablecoin by the virtual exchange exchange Bits of Gold”

Cryptonews.net

Cointelegraph quotes Bits of Gold founder and CEO Youval Rouach saying, “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.”

Finance Magnates similarly quotes Rouach describing “the bridge between the shekel and the new global financial system,” and it repeats the same “enabling real-time payments, on-chain trading and programmable financial applications based on a regulated local currency” language.

Finance Magnates also adds specific intended uses, saying BILS is intended for “liquidity provision, foreign exchange transactions against major stablecoins such as USDC, smart‑contract execution, and global shekel transfers.”

ynetnews says the stablecoin is expected to allow “money transfers over blockchain infrastructure, trading in digital assets, fast and efficient settlement between financial institutions and the development of additional blockchain-based financial services.”

Cointelegraph places the launch in a wider market context, stating that “the global stablecoin market capitalization was more than $320 billion,” and it notes the market is dominated by US dollar-pegged stablecoins like Tether's USDt (USDT).

It also says the launch came as the fiat currency was at a “30-year high against the US dollar, at 1 ILS to 0.34 USD at the time of publication.”

The approval includes direct statements from regulators and Bits of Gold leadership, with ynetnews quoting the Capital Market Authority’s head.

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

Finance Magnates

Finance Magnates also quotes Amit Gal, framing the decision as supporting “technological innovation alongside maintaining financial stability, protecting the public of customers and reducing systemic risks.”

On the company side, ynetnews quotes Yuval Roash, founder and CEO of Bits of Gold, calling the approval “a historic milestone for the Israeli economy,” and it says he described the BILS coin as “a bridge between the shekel and the new global financial system.”

Cointelegraph and Finance Magnates both quote Youval Rouach describing BILS as a bridge enabling “real-time payments, on-chain trading and programmable financial applications based on a regulated local currency.”

Cointelegraph also notes that the project was part of a larger effort by the Israel Tax Authority and the country’s Finance ministry to regulate the crypto industry, including by allowing certain stablecoin activities.

In addition, Finance Magnates says Bits of Gold has been operating since 2013 and is licensed by the Capital Market Authority, and it adds that it “serves over 250,000 registered clients.”

Several outlets connect Israel’s move to ongoing policy debates elsewhere, especially in the United States.

“The stablecoin, which will be pegged to the shekel, will be issued by Bits of Gold, a licensed financial asset service provider”

ynetnews

Cointelegraph says that “In the United States, lawmakers continue to debate provisions within a digital asset market structure bill over stablecoin yield, tokenized equities, and ethics concerns related to US President Donald Trump's potential conflicts of interest with the industry.”

ynetnews

It adds that the legislation is “effectively stalled in the US Senate since July 2025,” and that it “requires a markup by the chamber's banking committee before a potential vote.”

Finance Magnates similarly says the approval comes “ahead of a draft law on stable digital coins, which will be published for public comment,” and ynetnews says the issuance will begin “immediately” alongside the “expected publication of a draft bill on stablecoin issuance for public comment.”

In Israel’s framing, ynetnews says the approval was granted after a two-year review process and that the new activity will be carried out in line with “the government’s decision on advancing regulation of digital asset activity.”

Finance Magnates describes the decision as aligning with government policy on digital assets and says the activity “will remain limited in scope at the start.”

It also says the authority will continue supervising Bits of Gold’s activity with ongoing monitoring of compliance with regulatory conditions.