Charles Schwab, the brokerage giant managing roughly $12 trillion in client assets, has begun offering spot Bitcoin and Ethereum trading directly within its integrated platform. Unlike standalone crypto exchanges, Schwab embeds digital asset trading alongside equities, ETFs, and fixed-income products through a single user interface.
Pricing at 75bps, Paxos for Custody
Each trade is priced at 75 basis points (0.75%). Paxos, a regulated entity with a federal banking charter from the Office of the Comptroller of the Currency, will handle custody, execution, and settlement. The service is initially limited to invited employees and clients who signed up for early access, with a phased broader rollout planned.
The offering covers all US states except New York and Louisiana, which impose stricter crypto regulatory frameworks. Notably, users cannot transfer Bitcoin or Ethereum from external wallets into Schwab Crypto accounts, and crypto holdings are not covered by SIPC or FDIC insurance.
Regulatory Tailwinds: SAB 121 Repealed, Banks Greenlit
Schwab's launch follows significant regulatory shifts. In January 2025, the Securities and Exchange Commission rescinded Staff Accounting Bulletin 121, which had required custodians to report client crypto holdings as liabilities on their balance sheets. Shortly after, the OCC confirmed that national banks may engage in crypto custody and stablecoin activities.
"Big win for crypto! Banks can now custody Bitcoin. This is a game-changer for adoption and the future of finance," said former NBA star Scottie Pippen, commenting on the SEC policy update.
Previously, Schwab offered digital asset exposure through crypto-linked equities, futures, and spot exchange-traded products. The direct spot trading move marks a deeper commitment by a traditional financial heavyweight to the crypto space.
Impact on Retail Crypto Market
With $12 trillion in assets under management and a vast client base, Schwab is set to challenge platforms like Robinhood and Coinbase. US spot crypto ETFs recorded nearly $670 million in net inflows on their first trading day in 2026, reflecting strong demand for regulated products. Schwab's trusted brand and integrated service could attract investors who prefer a familiar broker for crypto exposure.
Market participants will closely watch in the second half of 2026 whether Schwab's approach—its pricing and limited token selection—can draw trading volume away from lower-cost, crypto-native competitors that offer a wider array of assets.
Founded in 1971 and headquartered in Westlake, Texas, Charles Schwab is one of the world's largest investment brokerages, offering wealth management, banking, and trading services. This launch strengthens its foothold in the evolving digital asset market.