Charles Schwab is set to launch its new crypto investing product, Schwab Crypto, in the coming weeks, offering clients direct access to trade Bitcoin and Ethereum. The brokerage firm will charge a 0.75% fee on each transaction, aiming to integrate digital asset trading within its existing investment ecosystem. This move positions Schwab to compete with platforms like Robinhood and Coinbase, addressing client demand to consolidate their diverse investment portfolios.
The new Schwab Crypto service will initially support direct trading of Bitcoin and Ethereum, with plans to expand to additional cryptocurrencies and introduce deposit and withdrawal functionalities over time. Clients will access the service through Schwab.com, Schwab Mobile, and the thinkorswim platform. Custody of client crypto holdings will be managed by Paxos, with dedicated crypto accounts established through Charles Schwab Premier Bank.
This initiative reflects a broader trend of traditional financial institutions entering the digital asset space, as noted by CEO Rick Wurster, who previously stated that clients want to bring their crypto holdings back to Schwab for trust and convenience. The 0.75% fee places Schwab's offering below Fidelity Crypto's 1% fee but above Robinhood's commission-free crypto trades. Some analysts, like Bloomberg's Eric Balchunas, suggest the fee could be a "tough sell" compared to lower-cost spot crypto ETFs.
Schwab's entry into direct crypto trading follows a period where clients could only access crypto-related exchange-traded products, futures, and options. The company, which manages trillions in client assets, aims to provide educational resources and research to help investors integrate digital assets into their portfolios. The announcement comes as Schwab's shares experienced a 5% drop following a disappointing first-quarter revenue report.
