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

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BILS is intended for use in liquidity provision, foreign exchange transactions against major stablecoins such as USDC, smart‑contract execution, and global shekel transfers. Additionally, Bits of Gold plans to deepen partnerships with financial institutions and payment providers to integrate BILS into existing systems.

According to the official communication, the stablecoin market now exceeds 320 billion dollars in market capitalization, with annual transaction volumes of approximately 46 trillion dollars.

Stablecoins have also 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.

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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 , 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 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.”

“The approval represents a milestone not only for our company, but for the evolution of financial infrastructure. 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.”

Bits of Gold has been operating since 2013 and is licensed by the Capital Market Authority. It serves over 250,000 registered clients and previously launched a crypto rewards credit card with MAX.