Charles Schwab Enters Cryptocurrency War, Launches Bitcoin and Ethereum Spot Trading
Charles Schwab, one of the largest brokerage firms in the United States with $10.7 trillion in client assets, is moving closer to offering direct (spot) trading for Bitcoin and Ethereum.
Meanwhile, CEO Rick Wurster has just confirmed that Schwab will soon launch spot trading services for Bitcoin and Ethereum, in the hope of helping customers keep all their money, stocks, bonds, and cryptocurrencies in one trusted place.
Schwab Launches Bitcoin and Ethereum Trading Services
In a recent interview with CNBC, Wurster noted that Schwab clients already hold significant amounts of cryptocurrency through exchange-traded products (ETPs), owning more than 20% of the entire ETP market.
However, cryptocurrencies still represent a small portion of Schwab’s total assets, about $25 billion out of a total of $10.8 trillion. Schwab believes that offering them simple spot trading of BTC and ETH “soon” will open up new growth.
The timing is perfect as crypto regulations are becoming clearer. The US House of Representatives recently passed the GENIUS Act, which sets new rules for stablecoins. This, along with loosening restrictions from banking regulators, has made it easier for companies like Schwab to move into crypto.
Competing with Coinbase
Schwab’s entry into the spot crypto trading market is aimed at challenging existing rivals like Coinbase. After listing Bitcoin and Ether ETFs and enabling related funds and options, the next step is to add more coins directly.
Wurster said many Schwab clients currently store 98% of their assets at the brokerage, but keep a small portion of their crypto on other exchanges. They want to see everything from stocks, ETFs, options, and now crypto, in one secure dashboard.
Organizations add cryptocurrencies
The move into crypto isn’t limited to Schwab. A March survey by Coinbase and EY-Parthenon found that 83% of institutional investors plan to increase their crypto allocations by 2025, with altcoins like XRP and Solana emerging as favorites.
Another study found that 90% are using or testing stablecoins. Schwab wants to be ready when these allocations move from “experimental” to “standard.”
Profits rise as Schwab grows
Despite a decline in global spot crypto trading last quarter, Schwab’s quarterly profit increased 60%, EPS reached $1.14, client assets increased 14% to $10.76 trillion, and trading revenue increased 23% to $952 million, partly driven by strong activity around news of new U.S. tariffs.
For Schwab, cryptocurrency is no longer just an add-on, it is becoming part of the company's core business plan going forward.