Israel Approves Shekel-Pegged Stablecoin Amid Crypto Regulation Efforts

Israel's Capital Market, Insurance and Savings Authority has approved the launch of a shekel-pegged stablecoin by the virtual exchange Bits of Gold. According to Cointelegraph, the Israeli regulator announced on Monday that it had granted approval for the BILS stablecoin following a two-year pilot program conducted on the Solana blockchain. The stablecoin's reserve assets will be maintained in Israel within designated and separate accounts. This initiative is part of a broader effort by the Israel Tax Authority and the country's Finance Ministry to regulate the cryptocurrency industry, including permitting certain stablecoin activities. Bits of Gold founder and CEO Youval Rouach stated that BILS establishes a direct connection between the Israeli shekel and the global digital assets economy, facilitating real-time payments, on-chain trading, and programmable financial applications based on a regulated local currency. As of Monday, the global stablecoin market capitalization exceeded $320 billion, with US dollar-pegged stablecoins like Tether's USDt (USDT) dominating the market. The introduction of BILS, one of the first Israeli shekel-pegged coins, coincides with the fiat currency reaching a 30-year high against the US dollar, valued at 1 ILS to 0.34 USD at the time of publication. Meanwhile, in the United States, lawmakers are engaged in ongoing discussions regarding a digital asset market structure bill, focusing on stablecoin yield, tokenized equities, and ethical concerns related to U.S. President Donald Trump's potential conflicts of interest with the industry. The legislation has been stalled in the US Senate since July 2025, pending a markup by the chamber's banking committee before it can proceed to a potential vote.