Bank Leumi, Israel’s second-largest bank is on track to be the first traditional bank to provide cryptocurrency trading in the country. The announcement was made by the bank’s digital application”Pepper Invest” after entering into a partnership with a U.S blockchain-focused firm Paxos.
The first of its kind service still awaits approval from regulatory authorities and as such, a date has not been set for the flag off.
The new service will be done on Pepper Invest. All customers of the digital platform can now store, buy and sell digital assets. As of now, only Bitcoin (BTC) and Ethereum (ETH) can be traded on the platform and the lowest amount for transactions is pegged at 50 shekels which is equivalent to about $15.50.
Pepper Invest is tasked with the responsibility of tax collections as per guidelines of the Israeli Tax Authority, therefore customers would not have to worry about the difficulty of managing their tax obligations. Customers will also not need to download a digital wallet and worry about the associated risks.
Pepper Invest is a financial-based app that offers a variety of investment opportunities with a user-friendly interface and easy language.
Bank’s Acceptance of cryptocurrency
The relationship between traditional banks the world over and cryptocurrency has not been such a cordial one in times past as the former feel threatened that cryptocurrencies will take away the central role they play in the financial ecosystem.
The recent increase in adoption and acceptance of the digital currency by retail clients and institutions has since forced banks to get on board and also profit from the new world while regulatory authorities design workable regulations as opposed to the outright ban of crypto.
JPMorgan, a U.S investment bank, has since moved from being a critic of digital currency to launching its own cryptocurrency “JPM Coin.” The legacy banking firm is also carrying out various projects in the metaverse as reported by cryptomarketsbeat.
Bank Leumi is Israel’s oldest bank with about 250 branches scattered around the country. It was founded in 1902 in Jaffa. The bank also has branches and representatives in major financial hubs across the globe with a staff strength of over 12,000 workers. Its clientele includes but is not limited to small and medium enterprises, big firms, and individuals amongst others.
Bank Leumi presently leads the digital banking space with a variety of innovative products and services.