Pepper will also help its customers manage tax complexities, by collecting tax as per the guidelines of the Israeli Tax Authority, during the transaction and converting back into NIS
Pepper to allow customers trade crypto. (Credit: WorldSpectrum from Pixabay.)
Bank Leumi’s mobile-only banking unit Pepper has partnered with US-based FinTech Paxos to enable cryptocurrency trading through its digital investment platform, Pepper Invest.
With the move, Pepper Invest will become the first banking platform in Israel to allow users to buy, hold and sell cryptocurrencies.
The service will be initially rolled out with Bitcoin and Ethereum, and the transactions are limited to NIS50 ($15.5) per transaction.
Customers with a trading account at Pepper Invest can purchase and sell cryptocurrencies, with one click of a button, said Bank Leumi.
Also, Pepper will help customers manage tax complexities, by collecting tax as per the guidelines of the Israeli Tax Authority, during the sale transaction and converting back into NIS in the current account.
The company intends to expand the crypto-trading services offered to Bank Leumi customers in future.
Pepper CEO Uri Nathan said: “We are proud to be the first in the Israeli banking system and one of the few worldwide to offer our customers to trade in cryptocurrencies simply, safely and reliably, without the need to download a crypto wallet and with all tax complexities being resolved by the bank.
“This step is a game-changer and offers our customers a bridge to the new era of investments and to the future of banking.”
Established in 2012, Paxos is a regulated blockchain platform that provides cryptocurrency brokerage service, asset tokenisation services, and settlement services.
With regulatory licenses issued by the different US authorities, the company manages more than $20bn in assets, and serves more than 400 million customers worldwide.
The blockchain operator claimed that it has built safe, regulated digital asset solutions for some of the world’s top financial services companies.
Its strategic customers and investors include Paypal, Bank of America and Revolut.