Israel Greenlights First Shekel-Backed Stablecoin, BILS, on Solana

Israel's Capital Market Authority has approved the launch of a shekel-backed stablecoin issued by Bits of Gold, a licensed domestic crypto operator, the company said in a LinkedIn post. The token, branded BILS, is fully reserved and pegged 1:1 to the Israeli new shekel, and will run on the Solana blockchain following a multi-year regulatory pilot. BILS is described as the Middle East's first government-approved, fiat-backed stablecoin. The project was developed with support from Fireblocks, with auditing by EY. Bits of Gold said the stablecoin is designed for real-time payments, on-chain trading and programmable finance, giving users local-currency exposure rather than relying on dollar-pegged tokens. CoinGecko data shows the global stablecoin market has grown beyond $316 billion in total capitalization, with more than 99% tied to the U.S. dollar. USDT and USDC account for the bulk of activity, effectively making stablecoins a dollar monoculture. Regulators will limit BILS' initial rollout to a predetermined scale, with institutional and other qualified participants expected to be prioritized. The Capital Market Authority also set stringent requirements covering technology risk management, information security, business continuity and ongoing reporting. Israel's regulators are also preparing a broader Stablecoin Law, expected to be released for public comment soon, to formalize the regulatory framework for digital currency issuance. The Bank of Israel has been exploring a central bank digital currency, but a decision is not expected before 2026 at the earliest. BILS is positioned as a private-sector product operating under government supervision. Israel's stance on crypto has shifted from skepticism to more cautious engagement. The country's strong base in cybersecurity and blockchain development is often attributed to its tech-centric economy and mandatory military service that channels talent through intelligence units such as 8200. Bits of Gold said BILS would allow users to hold a digital shekel in a private wallet, transfer shekels instantly at any hour, and trade digital assets against the shekel around the clock.