Israel Just Approved Its First Shekel Stablecoin — Everything You Need to Know About BILS

On April 28, 2026, something quietly historic happened in Israel's financial system. The Israel Capital Market Authority approved the launch of BILS — the country's first regulated stablecoin pegged 1:1 to the New Israeli Shekel. Most people outside of Israel's crypto community missed it. Here's why it matters.

What is BILS?

BILS is a digital token whose value is permanently fixed to the Israeli shekel. One BILS always equals exactly one ILS (New Israeli Shekel). Think of it as a digital shekel that lives on the blockchain — specifically the Solana blockchain — that you can send anywhere in the world in seconds, at near-zero cost, 24 hours a day. It was issued by Bits of Gold, Israel's oldest licensed crypto exchange, after a two-year regulatory pilot under strict supervision.

Who built it and who backs it?

BILS wasn't built overnight. It's the result of two years of work involving: Bits of Gold — Israel's licensed crypto exchange, founded in 2013, serving 250,000+ clients. Fireblocks — institutional-grade crypto custody used by BNY Mellon and Visa. QEDIT — Zero Knowledge Proof privacy technology. Ernst & Young — independent auditing. Solana — the blockchain infrastructure. Every BILS token is backed by exactly one Israeli shekel held in segregated bank accounts inside Israel, audited by EY. This isn't algorithmic — it's fully collateralized.

Why does this matter?

The global stablecoin market exceeds $320 billion. But over 99% of it is pegged to the US dollar. BILS is one of the first regulated non-dollar stablecoins from a developed economy. And the timing is deliberate — the Israeli shekel has gained over 20% against the dollar in the past year, making it one of the world's best-performing currencies. For Israeli users and businesses, BILS solves real problems: Send shekels globally in seconds without SWIFT delays. Trade crypto against the shekel without converting to USD stablecoins. Use shekels in DeFi applications on Solana. Store value in a strong, regulated local currency on-chain.

How is BILS different from a CBDC?

Important distinction: BILS is a private stablecoin, not a Central Bank Digital Currency. It's issued by a private company (Bits of Gold) under regulatory supervision — not by the Bank of Israel directly. The Bank of Israel is still studying its own digital shekel concept, expected no earlier than 2027. BILS got there first.

What's next for BILS?

The current launch is limited in scope — primarily for institutional and qualified participants. But Bits of Gold has signaled plans to expand partnerships with banks and payment providers to integrate BILS into existing financial systems. Israel is also preparing a broader Stablecoin Law, currently being drafted for public comment. BILS will serve as a real-world test case for that legislation.

This article is for educational purposes only and does not constitute financial advice.