Israel’s Securities Authority has officially approved four major global fintech firms for payment services licensing — despite pushback from the Bank of Israel. For crypto and tokenized finance, this marks a regulatory and strategic inflection point.
The news: Four global fintechs win regulatory approval
As reported in a LinkedIn update, the Israeli Securities Authority has granted payment institution licenses to:
Each is now authorized to operate fund transfer, currency conversion, digital wallets, and payment clearing services in Israel — including the ability to offer interest-bearing accounts to customers.
This shift occurred despite opposition from Israel’s central bank, marking a notable divergence between regulatory and monetary authorities.
Why this matters for global crypto-fintech
1. Traditional financial strongholds are eroding
Israel has long maintained strict oversight over its banking and payments landscape. Granting these licenses signals that even conservative jurisdictions are now welcoming global fintechs under a structured compliance framework.
2. Deposit products represent a new battleground
Licensing allows these firms to compete directly with banks for user deposits — and potentially offer tokenized, yield-bearing digital alternatives in the near future.
3. Crypto infrastructure firms should take note
Each of these fintechs already maintains crypto integrations globally. Israeli licensing may now support deeper development of regulated stablecoin rails, token bridges, and digital asset settlement across fintech platforms.
RatEx42 perspective
A signal for tokenized finance players
The fact that interest-bearing accounts and wallet custody rights are being granted to fintechs — not banks — suggests regulators are open to rethinking who should own financial infrastructure in the digital era.
A soft opening for regulated crypto
Firms like Revolut already offer crypto access. A payment license in Israel may become a gateway to local stablecoin products, digital remittances, or even RWA experimentation under regulated terms.
Fintech and crypto are converging
From embedded APIs to real-time cross-border payments, these firms are building the same tools as crypto — under different labels. Now, they’re licensed.
Final word
Israel’s decision to license Revolut, Rapyd, Mesh, and Airwallex is more than a local regulatory event. It is a signal that the architecture of money is shifting — and governments are starting to back alternative rails.
For crypto and tokenized finance, it reinforces a key thesis:
Licensing is not a pivot away from decentralization. It is the gateway to making it usable.
More regulatory and infrastructure analysis at RatEx42.com
