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Israel Approves Regulated Shekel-Backed Stablecoin From Bits of Gold

The limited rollout brings a fully reserved digital shekel into supervised market use under strict custody and disclosure rules.

Overview

  • Israel’s Capital Market, Insurance and Savings Authority cleared BILS, a shekel-pegged token from licensed firm Bits of Gold, for a controlled market launch after a two-year pilot on the Solana blockchain.
  • BILS must hold backing assets in Israel in segregated accounts and keep a one-to-one peg to the shekel, with set rules for liquidity, user redemptions, and ongoing regulatory reporting.
  • The token is meant to let people and businesses move shekels on-chain for real-time payments, trading, and programmable finance, offering a local-currency option in a market led by dollar stablecoins.
  • The issuer remains under active supervision as officials draft a stablecoin law and the Bank of Israel continues separate work on a central bank digital currency.
  • Israel’s move places it among countries testing regulated, domestic-currency stablecoins designed to connect national money to blockchain payment rails.