US-based investment giant Charles Schwab has announced it will gradually roll out spot cryptocurrency trading for individual investors. According to the official statement, buying and selling Bitcoin and Ethereum directly will soon be possible through a new service called Schwab Crypto, to launch in the coming weeks. The firm aims to extend its platform’s offerings beyond futures, options, and digital asset funds by making spot crypto trading accessible to its retail client base.
Schwab’s crypto debut begins with bitcoin and ethereum
In the initial phase, Schwab Crypto will support transactions exclusively in Bitcoin and Ethereum—cryptocurrencies that together account for roughly 75% of the global crypto market capitalization. Investors will be able to trade these assets conveniently using Schwab.com, the Schwab Mobile app, or the thinkorswim platform. The company has also stated that more digital currencies and facilities for transferring crypto in or out will be added in the future.
The new service will charge a transaction fee of 0.75%. This rate undercuts Fidelity Crypto’s 1% fee and positions Schwab as a more competitive option among mainstream retail platforms like Robinhood and Coinbase.
Investment and custody infrastructure
Schwab’s announcement says that a dedicated crypto account system will be set up to safeguard customers’ digital assets. Investors will be able to open a special crypto account at Charles Schwab Premier Bank, directly linked to their existing Schwab investment accounts. While Premier Bank will oversee the custody and record-keeping of digital assets, Paxos—a US-regulated blockchain infrastructure provider—will act as sub-custodian and transaction processor.
With nearly 35 million active investment accounts and trillions of dollars in client assets under management, Charles Schwab has long been a dominant player in retail and institutional investing. This latest move into digital assets shows a commitment to remaining competitive in the rapidly shifting financial technology landscape.
Fierce rivalry between traditional and next-gen trading platforms
Schwab’s foray into crypto aligns with a broader industry trend. Recently, Morgan Stanley launched a spot Bitcoin exchange-traded fund (ETF), while Goldman Sachs applied to provide a Bitcoin income-focused ETF. Meanwhile, top rival Fidelity took an earlier leap into the digital asset space by launching an app for direct cryptocurrency trading in 2023.
At the same time, crypto-centered platforms are increasingly offering traditional financial products. In recent months, Coinbase introduced commission-free stock trading, mirroring a similar move by Kraken. Schwab’s timing with its spot crypto offering further heats up the competition between legacy investment giants and crypto-native firms.
According to company executives, most Schwab clients have traditionally kept the bulk of their assets on Schwab’s platform, using outside apps only for limited exposure to crypto. With the launch of Schwab Crypto, the company intends for investors to manage their entire portfolios seamlessly within a single ecosystem.
Jonathan Craig, who leads Schwab’s retail investor division, emphasized that the new offering will enable clients to manage crypto investments alongside other assets, benefitting from Schwab’s research and educational resources. Joe Vietri underlined the goal of building a unified ecosystem where every financial product is accessible under one roof for customers.
A notable aspect of Schwab Crypto is its focus on education and guidance. The company will provide up-to-date analysis, market commentary, and training resources about digital assets through the Schwab Center for Financial Research and Schwab Coaching platforms. Around-the-clock customer support will be available via hotline, phone, and online chat.
A recent survey of 460 current and potential Schwab investors showed that price transparency, brand trust, and asset security are decisive factors in platform selection. Schwab is highlighting these quality-driven criteria as it markets the new service.
On Thursday, Charles Schwab’s share price dropped 5% following a first-quarter earnings report that fell short of expectations.
