Key Takeaways:
Brokerage giant Charles Schwab is set to launch direct trading for Bitcoin and Ethereum, giving its millions of clients direct access to the two largest cryptocurrencies.
The firm announced the upcoming ‘Schwab Crypto’ account in a teaser, confirming a move that expands its crypto offerings beyond the ETFs and futures products it already provides. “We are eyeing this quarter for a limited rollout,” Charles Schwab CEO Rick Wurster said to Barron’s, indicating a phased launch that will start with a small client pilot before a wider expansion.
The new accounts will allow clients to trade spot Bitcoin and Ethereum directly. This follows the firm’s existing crypto-related investment options, which include crypto-backed exchange-traded funds and futures contracts for Bitcoin. The firm’s bank, SSB, will be responsible for the crypto offering, with early access granted to some customers before a public launch.
This development brings a firm with $12 trillion in assets under management and 46 million client accounts directly into the crypto trading market, a significant step for institutional adoption. The move could introduce a substantial new wave of capital into Bitcoin and Ethereum and places Schwab in direct competition with both crypto-native exchanges and other traditional finance players like Morgan Stanley, which is also planning to roll out crypto trading on its E*TRADE platform.
The strategic push extends beyond client-facing products. EDX Markets, a crypto exchange backed by Charles Schwab, Fidelity, and Citadel Securities, is currently seeking a national bank charter from the Office of the Comptroller of the Currency (OCC). EDX CEO Tony Acuña-Rohter has stated that the next wave of crypto adoption will be driven by large banks, and securing a national trust charter would position the exchange to serve these institutions. This broader strategy shows a deepening commitment to the digital asset class from some of Wall Street’s most established firms.
This article is for informational purposes only and does not constitute investment advice.
