Key Insights
- Charles Schwab has announced Schwab Crypto, its spot crypto trading app for retail users.
- The $12 trillion AUM brokerage firm will integrate it with broader offerings for a robust user experience.
- TradFi firms continue to launch crypto offerings even as crypto exchanges want to offer traditional products.
Leading brokerage firm Charles Schwab is set to launch spot Bitcoin and Ethereum trading for retail users. The firm disclosed this in an announcement on Thursday, noting that it is called Schwab Crypto.
It is expected to launch in phases over the coming weeks, with Charles Schwab Premier Bank operating it. The bank will operate a crypto account for each client, linked to their brokerage accounts, while the bank serves as custodian.
Charles Schwab to Integrate Crypto into Broader Offering
According to the firm, the new product will allow retail users to trade crypto while continuing to access other services they already enjoy on its brokerage platform. It stated that there will be educational content and professional support.
It said:
“Retail clients will have access to Schwab Crypto
alongside the research, education, service, and comprehensive investing, trading, wealth, and banking offers they already enjoy at Schwab.”
While the company is starting with Bitcoin and Ethereum, it plans to add other crypto assets in due time. There is also a plan to enable deposits and withdrawals, allowing users to move their crypto assets to the platform.
The company’s head of Digital Assets, Joe Vietri, noted that Schwab Crypto allows users to have access to crypto as part of their broader investing goals. He said that the goal is for the platform to become the destination of choice for retail investors.
Interestingly, the firm is also partnering with Paxos, which will provide the sub-custody and execution services. Users who want to gain early access to Schawb Crypto have been advised to sign up.
TradFi Continues to Venture Into Crypto
Meanwhile, Charles Schwab stated in its announcement that the trading platform is not its first venture into crypto. It noted that its clients already hold around 20% of all spot crypto exchange-traded products.
Still, the company’s move, with around $12 trillion in assets under management (AUM), only reflects the broader trend. Several traditional financial firms have integrated digital assets into their offerings.
In fact, the firm is coming late to the game, as its major rival, Fidelity, launched a crypto trading app back in 2023. In recent weeks, two Wall Street giants have joined the list, with Morgan Stanley recently launching its spot Bitcoin ETF MSBT. Goldman Sachs also filed for a Bitcoin income ETF.
However, the expansion is also happening on the crypto side, with crypto exchanges such as Coinbase and Kraken also offering equities trading. Users stand to be the major beneficiaries of this competition if it leads to reduced trading fees on the platform.
However, traditional firms believe they have an advantage, especially given their reputation. Charles Schwab stated in an announcement that a survey it conducted in 2025 among existing and potential crypto users shows that brand reputation is a key consideration.
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