Traditional banks in Israel are starting to sell Bitcoin and Ethereum directly.
Starting November 26, individual customers of Israel Discount Bank can buy, hold, and sell BTC and ETH through the bank’s app, without having to create a separate crypto wallet or register for an account with an overseas exchange.
The bank says this is the first service of its kind to be launched by Israel’s banking industry.
However, the service is not available to all customers. Users must be at least 18 years old, residents of Israel, and already have a securities account.
The fee structure has also been announced:
A 2% fee on the amount of each transaction; custody fees are waived for the first six months after launch, then charged at 0.25% per quarter.
The underlying custody infrastructure is provided by Fireblocks.
What really matters here is that the gateway for users to access crypto assets has changed.
In the past, ordinary bank customers who wanted to buy Bitcoin usually had to first learn about exchanges, wallets, private keys, and on-chain transfers. Now, the bank account and app take care of these steps, allowing users to gain exposure to BTC and ETH directly through familiar financial services.
Of course, a 2% transaction fee isn’t cheap. But for ordinary customers unfamiliar with crypto infrastructure, convenience and trust in the banking channel may matter more than low fees.
As traditional banks start incorporating crypto assets into their securities services, Crypto’s user growth will no longer depend solely on exchanges competing for customers.
Starting November 26, individual customers of Israel Discount Bank can buy, hold, and sell BTC and ETH through the bank’s app, without having to create a separate crypto wallet or register for an account with an overseas exchange.
The bank says this is the first service of its kind to be launched by Israel’s banking industry.
However, the service is not available to all customers. Users must be at least 18 years old, residents of Israel, and already have a securities account.
The fee structure has also been announced:
A 2% fee on the amount of each transaction; custody fees are waived for the first six months after launch, then charged at 0.25% per quarter.
The underlying custody infrastructure is provided by Fireblocks.
What really matters here is that the gateway for users to access crypto assets has changed.
In the past, ordinary bank customers who wanted to buy Bitcoin usually had to first learn about exchanges, wallets, private keys, and on-chain transfers. Now, the bank account and app take care of these steps, allowing users to gain exposure to BTC and ETH directly through familiar financial services.
Of course, a 2% transaction fee isn’t cheap. But for ordinary customers unfamiliar with crypto infrastructure, convenience and trust in the banking channel may matter more than low fees.
As traditional banks start incorporating crypto assets into their securities services, Crypto’s user growth will no longer depend solely on exchanges competing for customers.