Regulators greenlight Israel’s first ILS-pegged stablecoin issued by Bits of Gold
The Israeli financial market has officially entered a new era of digital settlements. For the first time, the country’s Securities Authority and relevant regulators have granted official permission for the issuance of a stablecoin strictly pegged to the national currency, the shekel. The pioneer in this field is the licensed crypto platform Bits of Gold, which received the right to issue and distribute the digital asset under close state supervision.
Strict Collateral and Transparency Standards
The key factor behind the approval was the unprecedented security and transparency system of the new asset. According to regulatory requirements, the coin will be backed by fiat reserves at a strict 1:1 ratio. All assets guaranteeing the stablecoin’s value must be held in dedicated segregated accounts within Israeli banking institutions. This eliminates the possibility of using client funds for the company’s operational activities and ensures a high level of investor protection against market volatility.
Liquidity and Instant Redemption Mechanisms
Special attention in the regulatory framework is given to consumer protection and maintaining the stability of the financial system. The new stablecoin is equipped with built-in instant liquidity mechanisms. This means that digital shekel holders can convert their assets back into traditional currency at par value at any time. This approach minimizes the risks of “liquidity gaps” and makes the instrument as reliable as bank deposits, but with the added advantages of blockchain technology.
New Horizons for Business and Private Transfers
The primary goal of introducing the stablecoin is to radically simplify and accelerate money circulation within the country. The digital shekel is designed for real-time cross-border and domestic transfers, efficient trading on digital asset exchanges, and, most importantly, interbank settlements. It is expected that the use of this tool will significantly reduce transaction costs for financial organizations and make the process of paying for goods and services more technologically advanced and transparent for government authorities.
