Israel Clears First Shekel-Backed Stablecoin, BILS

Israel has approved the country's first stablecoin pegged to the Israeli shekel, authorizing Bits of Gold to issue BILS in a move that signals tighter, more formal oversight of digital assets. Regulators granted the green light after a review spanning roughly two years, including a supervised pilot conducted in a regulatory sandbox. The initial rollout will be limited in scope and subject to predefined conditions, as authorities continue work on a broader legislative framework for stablecoins. Under the approval terms, BILS will be fully backed 1:1 by shekel reserves held domestically in designated, segregated Israeli accounts. Supervisors also require ongoing liquidity management and a functioning redemption process so holders can convert the token to fiat at any time. The oversight package includes requirements covering technology risk controls, cybersecurity protections, business continuity planning, and immediate reporting of material incidents. Authorities said supervision will continue as the project moves beyond the pilot stage. Officials framed the controlled launch as consistent with the government's policy direction to regulate digital-asset activity inside the domestic financial system. A draft stablecoin bill is expected to be released for public consultation. Bits of Gold positions the shekel-pegged token for blockchain-based payments and transfers, potential settlement use cases, and digital-asset trading. The company and regulators also point to the potential for faster accounting workflows between entities and the development of additional blockchain-enabled financial services. Regulators cited data showing the global stablecoin market exceeds $320 billion, dominated by U.S. dollar-pegged tokens. Stablecoin regulation is also being debated in the United States, where Senate proposals remain under review and include provisions on yield, tokenization, and governance standards. Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Coin Edition is not responsible for any losses resulting from the use of the content, products, or services referenced. Readers should exercise caution before taking action related to the company.