Charles Schwab has started rolling out Schwab Crypto to select retail clients, giving eligible users direct access to spot Bitcoin and Ether trading.
Summary
- Schwab Crypto lets eligible retail clients trade Bitcoin and Ethereum beside traditional investment products.
- Charles Schwab Premier Bank will custody assets, while Paxos handles execution and sub-custody services.
- The launch adds fee pressure as Morgan Stanley expands ETrade crypto trading at lower costs.
In a Tuesday post on X, the firm said the service lets clients trade crypto beside other investment products across Schwab platforms.
The rollout follows Schwab’s April plan to launch the product in phases. The company said Schwab Crypto would offer direct Bitcoin and Ethereum trading, education, research and support. Jonathan Craig, head of retail investing, said clients want to conduct “more of their financial lives at Schwab.”
Bitcoin and Ethereum trading starts with limits
At launch, Schwab Crypto supports Bitcoin (BTC) and Ethereum (ETH). Schwab said the two assets account for about three-quarters of total crypto market capitalization. Clients can view and trade crypto beside traditional investments through Schwab.com, Schwab Mobile and thinkorswim.
The product charges 75 basis points on the dollar value of each trade. Schwab also said the account is separate from a brokerage account, though it is linked to the client’s wider Schwab relationship. The service is not available in New York, Louisiana, U.S. territories or international markets.
Moreover, Charles Schwab Premier Bank serves as custodian for client digital assets. Paxos provides sub-custody and trade execution. Schwab described Paxos as an OCC-regulated blockchain infrastructure provider serving large financial firms.
The company also warned clients about crypto risk. Schwab said cryptocurrencies are “not FDIC insured” and “may lose value.” It added that not all clients will qualify for Schwab Crypto, even if they receive updates or apply for access.
Schwab enters a busier retail crypto race
The launch gives Schwab a direct spot crypto product after years of offering indirect exposure through ETFs, futures and crypto-linked funds. Earlier reports noted that Schwab had been preparing a phased launch for its large brokerage base, after reporting rising crypto interest from users.
Schwab reported $11.77 trillion in total client assets at the end of the first quarter, up 19% from a year earlier. It also added 1.3 million new brokerage accounts, bringing active brokerage accounts to 39.1 million.
The launch comes as traditional finance firms expand direct crypto access. As crypto.news reported, Morgan Stanley’s ETrade crypto pilot offers Bitcoin, Ether and Solana trading at a 0.5% fee. That is below Schwab’s 75-basis-point fee and may add pressure on retail crypto pricing.
Schwab’s move may also increase competition with crypto-native exchanges. Coinbase, Robinhood, Fidelity and Morgan Stanley are all targeting U.S. users who want regulated access to digital assets.