Israel Introduces Its First Regulated Stablecoin, the Digital Shekel

For the first time, Israel's Capital Market Authority has given the green light to a stablecoin tied to the shekel. Following a two-year evaluation and pilot process, Tel Aviv-based cryptocurrency exchange Bits of Gold has been authorized to issue the BILS token. This collaboration with the Solana network and crypto custodian Fireblocks, with auditing oversight from Big Four consultancy firm EY, marks a significant milestone. The stablecoin market, which has grown to over $300 billion in the last 18 months, is dominated by U.S. dollar-pegged tokens, sparking concerns about financial sovereignty in non-U.S. markets. The Israeli shekel, backed by a robust technology sector and stable macroeconomic management, has emerged as one of the top-performing fiat currencies, gaining over 20% against the dollar in the past year. By bringing the shekel into the blockchain, it joins other major currencies like the euro, yen, and Singapore dollar, which are increasingly being used in blockchain-based financial systems.