Charles Schwab has begun the phased rollout of its "Schwab Crypto" platform, granting U. S. retail clients direct access to spot Bitcoin (BTC) and Ethereum (ETH) trading. This initiative allows users to trade these leading cryptocurrencies alongside their traditional investments, marking a significant step in integrating digital assets into mainstream financial services.
The Schwab Crypto platform supports trading via Schwab. com, Schwab Mobile, and the thinkorswim platform. The service is currently available in most U. S. states, excluding New York and Louisiana. Each transaction incurs a fee of 75 basis points. While the platform facilitates the trading, it does not currently support external wallet transfers, meaning clients cannot deposit or withdraw crypto from external sources. Charles Schwab Premier Bank acts as the primary custodian, while Paxos Trust Company handles sub-custody and trade execution.
This move by Schwab underscores the increasing demand for cryptocurrency exposure among retail investors. According to a recent Schwab survey, key factors for investors choosing a crypto trading platform include low fees, brand reputation, and security. Jonathan Craig, Head of Retail Investing at Charles Schwab, stated that clients desire to conduct more of their financial lives at Schwab, and Schwab Crypto allows them to trade crypto alongside other investments with the service and research they expect.
Schwab already has a substantial presence in the digital asset space, with clients holding approximately 20% of spot crypto exchange-traded products. The introduction of direct crypto trading expands upon existing offerings like crypto futures, options, ETFs and mutual funds. While initially limited to Bitcoin and Ethereum, Schwab plans to add more cryptocurrencies and transfer capabilities over time. The company emphasizes that crypto holdings are not FDIC or SIPC insured, advising clients to consider the risks involved.
