Israel Approves a Regulated Stablecoin on the Solana Network
On April 28, 2026, Israel’s Capital Market Authority approved BILS - a privately issued stablecoin by Bits of Gold, backed by the Israeli shekel.
Summary:
- The BILS stablecoin was approved on April 28, 2026.
- It is issued by Bits of Gold on Solana, with settlement times under 400 ms.
- Reserves are backed 1:1 and held in segregated Israeli accounts.
- The central bank’s digital shekel remains only a plan for now.
In most countries, stablecoins emerge after legislative changes, with products launching without real-world testing. Israel chose a different approach. According to available information, BILS was tested for two years in a real-world environment before approval. The regulator monitored actual transactions and custody operations.
The decision is not based on anticipated risk, but on a proven model, making BILS the first project of its kind to exit a regulatory sandbox and move into real-world use.
Technology and Control
BILS uses zero-knowledge proof technology. This allows the regulator to verify compliance with predefined transaction rules without seeing the transaction details. Institutions retain privacy, while the regulator retains control. This removes a key barrier that has so far limited institutional participation in other stablecoins.
READ MORE: Stablecoins Raise Risk of Bank Runs and Policy Breakdown, BIS Says
The Limitation Remains Infrastructure
BILS runs on the Solana network. The regulator controls reserves and the operations of Bits of Gold, but does not control the network itself. Validators are global and independent, creating a structural risk that cannot be eliminated within this model.
A central bank digital shekel would address this issue through controlled infrastructure, but such a product does not yet exist.
The key signal over the next six months will be whether an Israeli bank integrates BILS. This would demonstrate that the model of privacy and regulation works at an institutional level and that BILS is transitioning from a product into infrastructure.
Broader Implications
This model could be applied elsewhere.
Similar solutions are already emerging in Europe, following the introduction of the MiCA framework. Since then, euro-denominated stablecoins have become significantly more relevant, as many dollar-based solutions face regulatory constraints.
Larger projects like EURC from Circle are already positioning themselves in line with the new requirements. For local markets, this means cheaper cross-border payments and more direct access to euro liquidity.
The key question, however, remains: whether banks will integrate such solutions and turn them from an option into widely used infrastructure.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Zdravkov
Reporter at CoinsPress
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
