Israel Greenlights Shekel Backed Stablecoin

Bits of Gold gets stablecoin issuance approval.

The digital asset platform has officially received an initial approval to issue a 1:1 Shekel-backed stablecoin from the Capital Market and Insurance Savings Authority in Israel.

Working in partnership with Fireblocks and QEDIT for ensuring security across infrastructure and ZK (Zero Knowledge) cryptography, BLS stablecoin could also launch first on the Solana network.

Bits of Gold issued out a statement:

After an intensive pilot period within the framework of the regulatory sandbox, which included an in-depth examination of risk management, information security, privacy protection, and backup mechanisms, we move on to the next stage: the broad distribution of the digital shekel.

For now, this will be limited in scope as set out by the regulatory body and support the upcoming rollout of broader stablecoin law across the country. A stablecoin testing phase was being conducted for around 2 years before this development, showing that more countries are ready to implement stablecoin technology into daily practice.

Bits of Gold is founded by Youval Rouach in Tel Aviv back in 2013 and to date has raised a $500K seed round, with Omer Paz responsible for the development of the BLS stablecoin.