Key Takeaways
- • Charles Schwab will launch direct cryptocurrency trading to its 39 million active brokerage customers in the coming weeks, with an initial focus on bitcoin and ethereum, which represent approximately three-quarters of total cryptocurrency market value.
- • Schwab Crypto will charge 75 basis points per transaction, positioning the offering among the lowest-cost options in the industry, with integrated access across Schwab's website, mobile app, and thinkorswim platform.
- • Charles Schwab Premier Bank will serve as custodian while Paxos, an OCC-regulated blockchain infrastructure provider, will handle sub-custody and trade execution, addressing key investor concerns around security and asset safekeeping identified in Schwab's survey of nearly 500 crypto investors.
- • The rollout marks a significant competitive shift, putting Schwab in direct competition with crypto-native platforms like Coinbase and retail trading apps like Robinhood, while representing a substantial upgrade from Schwab's previous indirect crypto exposure offerings via ETFs and derivatives.
- • Initial service constraints include disabled deposit and withdrawal functionality at launch, with customers required to purchase crypto directly through Schwab; the platform will be unavailable for New York and Louisiana residents, though expansion to additional cryptocurrencies and transfer capabilities is planned.
Summary
Charles Schwab announced this week that it will begin offering direct cryptocurrency trading to its 39 million active brokerage account holders in the coming weeks through a new service called Schwab Crypto. The offering will initially support bitcoin and ethereum trading, with plans to expand to additional digital assets over time. This marks Schwab's transition from providing only indirect crypto exposure through exchange-traded funds and derivatives to enabling direct spot trading of digital assets.
The platform will integrate seamlessly with Schwab's existing ecosystem, allowing customers to view and manage cryptocurrency holdings alongside traditional stocks and bonds across the firm's website, mobile app, and thinkorswim trading platform. Jonathan Craig, Head of Retail Investing at Charles Schwab, stated: "We know our clients want to conduct more of their financial lives at Schwab. With Schwab Crypto, clients who want direct access to the asset class can trade it alongside their other investments, while benefiting from the service, education, and research they expect from us."
Schwab's pricing structure sets the offering at 75 basis points per transaction, positioning it competitively within the broader market for crypto trading services. The infrastructure supporting Schwab Crypto reflects institutional-grade safeguards: Charles Schwab Premier Bank will serve as custodian responsible for safekeeping and record-keeping, while Paxos—a blockchain infrastructure provider regulated by the Office of the Comptroller of the Currency—will handle sub-custody and trade execution. These arrangements directly address the three primary factors identified in Schwab's survey of nearly 500 current and prospective cryptocurrency investors conducted between July and September 2025: low and transparent pricing, brand familiarity and reputation, and confidence in asset security.
The launch introduces operational constraints initially, with deposit and withdrawal functionality disabled at inception, requiring customers to purchase bitcoin and ethereum directly through Schwab rather than transferring existing holdings. The service will also be unavailable for New York and Louisiana residents. The rollout represents substantial competitive pressure on crypto-native platforms such as Coinbase and retail trading applications like Robinhood, while establishing Schwab among traditional financial institutions actively deepening their digital asset capabilities. With $12.22 trillion in reported client assets as of early 2026, the scale of Schwab's customer base amplifies the significance of this market entry.
The platform will integrate seamlessly with Schwab's existing ecosystem, allowing customers to view and manage cryptocurrency holdings alongside traditional stocks and bonds across the firm's website, mobile app, and thinkorswim trading platform. Jonathan Craig, Head of Retail Investing at Charles Schwab, stated: "We know our clients want to conduct more of their financial lives at Schwab. With Schwab Crypto, clients who want direct access to the asset class can trade it alongside their other investments, while benefiting from the service, education, and research they expect from us."
Schwab's pricing structure sets the offering at 75 basis points per transaction, positioning it competitively within the broader market for crypto trading services. The infrastructure supporting Schwab Crypto reflects institutional-grade safeguards: Charles Schwab Premier Bank will serve as custodian responsible for safekeeping and record-keeping, while Paxos—a blockchain infrastructure provider regulated by the Office of the Comptroller of the Currency—will handle sub-custody and trade execution. These arrangements directly address the three primary factors identified in Schwab's survey of nearly 500 current and prospective cryptocurrency investors conducted between July and September 2025: low and transparent pricing, brand familiarity and reputation, and confidence in asset security.
The launch introduces operational constraints initially, with deposit and withdrawal functionality disabled at inception, requiring customers to purchase bitcoin and ethereum directly through Schwab rather than transferring existing holdings. The service will also be unavailable for New York and Louisiana residents. The rollout represents substantial competitive pressure on crypto-native platforms such as Coinbase and retail trading applications like Robinhood, while establishing Schwab among traditional financial institutions actively deepening their digital asset capabilities. With $12.22 trillion in reported client assets as of early 2026, the scale of Schwab's customer base amplifies the significance of this market entry.
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