Israeli Financial Authorities Officially Approve First Shekel-Pegged Stablecoin BILS... Securing Solana-Based Technology

On April 28, 2026, the Israeli financial landscape reached a significant turning point. The Israel Capital Market, Insurance and Savings Authority officially approved the launch of 'BILS', the country's first regulated stablecoin developed by the virtual asset exchange Bits of Gold. BILS, whose value is pegged to the Israeli Shekel (ILS), is the result of successfully completing a rigorous two-year regulatory pilot program.

This approval holds historical significance as the first instance in Israeli financial history where a digital asset has been integrated with legal tender. By granting a formal license to Bits of Gold, the Capital Market Authority has opened the possibility for the commercialization of the digital shekel. This is evaluated as a demonstration of Israel's commitment to embracing innovation within the institutional framework in line with global cryptocurrency regulatory trends.

BILS will serve as a bridge between the traditional shekel and the new global financial system. This approval is a significant milestone in the modernization of Israeli finance. - Yuval Rouach, CEO of Bits of Gold

The technical infrastructure of BILS was built on Solana, a high-performance blockchain. During the two-year pilot period, the efficiency of the Solana network was verified, and asset custody is handled by Fireblocks, a global specialist in virtual asset custody. Furthermore, EY (Ernst & Young), a world-class accounting and consulting firm, took charge of audit supervision, enhancing the system's transparency and reliability.

Transparent Deposit Management and Security System

BILS adopted a mechanism of holding deposits in segregated accounts within Israel to ensure value stability. The entire circulating supply is backed 1:1 by actual shekel assets and is strictly managed according to the guidelines of the regulatory authorities. This structure is a key safety measure to protect user assets and maintain the stablecoin's pegging even amidst market volatility.

• Storage and management of deposits through segregated accounts within Israel
• Support for ultra-fast real-time payments utilizing the Solana blockchain
• Ensuring reserve transparency through regular audits by EY
• Continuous regulatory compliance monitoring by the Capital Market Authority

This formal approval signifies more than just a permit; it marks the successful conclusion of a two-year regulatory sandbox. During the pilot program, authorities closely examined the impact of the stablecoin on the financial system and its security vulnerabilities. The regulatory framework established through the testing process is expected to become the standard for other digital asset services in Israel in the future.

Bits of Gold has a strategic vision to expand the real-time payment ecosystem within Israel through BILS. By enabling instant transfers and payments using blockchain technology beyond the limits of existing banking systems, the efficiency of the local economy is expected to improve significantly. This will contribute to solidifying Israel's position as a global fintech hub.

Comparison with Global Standards and Market Impact

Israel's BILS regulatory model shows a differentiated approach from the European Union's (EU) MiCA or the United States' GENIUS Act. While MiCA aims for a comprehensive single regulatory framework, Israel chose a tailored model where a specific supervisory body approves and manages the stablecoin issuance of individual exchanges. This method is interpreted as an attempt to meet international transparency standards while reflecting the specificities of the local market.

The introduction of BILS is expected to act as a catalyst for increasing liquidity and activating trading volume in the Israeli cryptocurrency market. In particular, the emergence of a regulated asset directly linked to legal tender could have the effect of lowering barriers to entry for institutional investors. The Capital Market Authority plans to maintain market integrity by continuously monitoring compliance with regulatory conditions even after the approval.