Israel Approves Shekel Stablecoin on Solana After 2-Year Live Test

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Israel Approved a Shekel Stablecoin on Solana After 2 Years of Live Testing

Key Takeaways

  • BILS approved April 28, 2026 by Capital Market, Insurance and Savings Authority.
  • Issuer: Bits of Gold, licensed Israeli crypto brokerage.
  • Blockchain: Solana, sub-400ms settlement.
  • Reserves: 1:1 shekel-backed, segregated Israeli bank accounts, audited by EY.
  • Custody: Fireblocks; privacy: QEDIT zero-knowledge proofs.
  • First private stablecoin to exit sandbox status in Israel.

After a successful two-year trial, the project received the green light. While the Bank of Israel is developing its own digital currency, the digital shekel, it hasn’t announced when it will be released. Importantly, the industry itself established the technical standards before the central bank’s plan took shape.

Evidence Over Anticipation

The Capital Market Authority didn’t approve BILS based on predictions. Instead, they observed how it functioned in real-world scenarios for two years before making a decision. This ‘test-in-the-real-world’ approach differs from creating a law, which relies on forecasting potential risks. A two-year observation period focuses on actual, demonstrated risks. Because of this history, a treasury team considering BILS doesn’t need to perform the same level of independent investigation they would if BILS had only been approved through legislation.

As shared on LinkedIn, the system’s design enhances security. QEDIT’s technology lets the Capital Market Authority confirm that all transactions are legitimate and reserves are complete, all without needing to see who is involved or the transaction amounts. This gives the regulator complete insight into whether everything is compliant.

This system ensures complete privacy for all transactions. Previously, regulated stablecoins couldn’t attract large institutional investments because of a fundamental conflict: regulations demanded transparency, while institutions needed confidentiality. No existing solution could offer both. This system does. This isn’t just an added benefit – it’s a core design element that will determine if this technology becomes widely used by institutions or remains limited to everyday consumer payments.

The Approval The Bank Of Israel Has To Watch

Despite testing, one key risk remains with Bits of Gold’s system. While Bits of Gold operates on Solana, a network based outside of Israel, the Israeli Capital Market Authority can oversee Bits of Gold’s assets and how they are checked for accuracy. However, the Authority has no power to force Solana’s network to fix itself if it experiences problems. This lack of control over the underlying network was present from the start and hasn’t been addressed by any reviews since.

Israel’s central bank is working on a digital version of the shekel, but so far has only outlined a plan. Meanwhile, a private digital shekel called BILS is already available. Bits of Gold, the company behind BILS, aims to build a strong user base and transaction history before the official digital shekel launches, hoping to become the established standard. Other countries considering digital currencies are closely watching this situation, especially since their own plans are delayed and private stablecoins are waiting for approval. Israel’s approach of testing through a limited ‘sandbox’ program seems to be a more effective way to gain approval than relying on new laws. However, it remains to be seen how things will play out when the central bank’s digital shekel eventually enters the market and competes for the same users.

We’ll consider the project confirmed if an Israeli bank or major financial firm integrates it within six months, proving the technology works with actual regulatory demands. We’ll consider it a failure if Israel’s financial regulator restricts its use due to problems with Solana, or if the central bank decides to limit private stablecoins before launching its own digital currency.

This article is for informational purposes only and shouldn’t be considered financial, investment, or trading advice. Coindoo.com doesn’t support or suggest any particular investment or cryptocurrency. Always do your own research and talk to a qualified financial advisor before investing.

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2026-04-28 14:34