For the first time, Israel’s Capital Market Authority has approved a stablecoin tethered to the shekel. Tel Aviv-based crypto exchange Bits of Gold secured this authorization following an extensive two-year evaluation and pilot program, as noted in a LinkedIn post by the authority.
The newly developed token, BILS, was created through collaboration with the Solana network and major crypto custodian Fireblocks. Auditing responsibilities were handled by EY, one of the Big Four consulting firms, according to an emailed statement from Bits of Gold.
In recent months, the stablecoin market—crypto tokens linked to traditional financial assets like fiat currencies—has expanded rapidly, reaching over $300 billion in value. This growth is largely attributed to the establishment of formal regulatory frameworks in key markets such as the U.S.
The predominance of U.S. dollar-pegged stablecoins has raised concerns among non-U.S. markets about potential threats to their financial and digital sovereignty if on-chain payments were to default primarily to dollars.
“The Israeli shekel ranks among the top-performing fiat currencies in developed markets, buoyed by a robust technology sector and consistent macroeconomic management,” Bits of Gold stated in its announcement last Monday.
Over the past year, the shekel has appreciated more than 20% against the dollar, according to Visual Capitalist, making it the leading currency among nations with an annual GDP exceeding $250 billion.
“By bringing the shekel on-chain, it aligns with other major currencies like the euro, yen, and Singapore dollar that are increasingly being adopted in blockchain-based financial systems,” Bits of Gold elaborated.