Charles Schwab has announced the launch of Schwab Crypto, a spot cryptocurrency trading service rolling out to retail clients in the coming weeks. The service initially supports direct trading of Bitcoin (BTC) and Ethereum (ETH), allowing customers to view and manage their crypto assets alongside traditional investments on the same platform.
Fee Structure and Integration
Each trade on Schwab Crypto will incur a fee of approximately 75 basis points (0.75%). This streamlined integration eliminates the need for separate crypto exchange accounts, making it easier for everyday investors to add digital assets to their portfolios. The firm aims to combine the familiarity of a traditional brokerage with the growing demand for crypto exposure.
Custody and Technology Partners
Asset custody will be handled by Schwab Premier Bank, ensuring institutional-grade security. The blockchain infrastructure and trade execution are provided by Paxos, a regulated crypto services provider that also powers platforms like PayPal. This partnership leverages proven technology while adhering to strict compliance standards.
Future Expansion and Industry Significance
Charles Schwab plans to extend support to additional cryptocurrencies and introduce deposit and withdrawal functions in the future. Currently, the service is limited to in-platform trading. As one of the largest brokerages overseeing over $8 trillion in assets, Schwab's entry into direct crypto trading signals a major shift in mainstream finance. It pressures other traditional firms to offer similar services, further bridging the gap between digital assets and conventional investing.
By enabling retail clients to buy and sell Bitcoin and Ethereum directly through a trusted brokerage account, Schwab Crypto removes friction points and lowers the barrier to entry. This move is expected to accelerate cryptocurrency adoption among mainstream investors and reinforce the trend of regulated, integrated crypto access.