Charles Schwab’s plan to launch spot cryptocurrency trading in 2026 is taking shape as one of the most significant moves by a major U.S. brokerage firm.
The company, which manages over $12 trillion in customer assets, plans to offer Bitcoin and Ethereum trading across its platforms after internal testing and a limited pilot phase.
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Charles Schwab brings mainstream investors to crypto
Schwab’s entry signals a shift in the way traditional brokers approach digital assets. While the company already offers indirect exposure through crypto-themed ETFs, spot trading will bring crypto into the same environment as stocks, bonds and retirement accounts.
This could change the way mainstream investors access cryptocurrencies.
The announcement also highlights a strategic push to integrate investor activities. Millions of Schwab customers currently hold traditional assets and use external exchanges for cryptocurrencies.
Bringing these capabilities together into one account reduces friction and strengthens Schwab’s footprint across asset classes.
Meanwhile, another US financial giant, Vanguard, also announced its expansion into cryptocurrencies last week.
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New competitive threats
Mr. Schwab’s move poses a structural challenge for U.S. crypto exchanges. This brokerage firm is known for zero-commission stock and ETF trading.
Extending the same low-fee approach to cryptocurrencies would undermine the core revenue models of companies like Coinbase and Kraken.
Cryptocurrency exchanges rely heavily on transaction fees. Coinbase’s retail fees often exceed 1%, with advanced platforms charging up to 0.60%.
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Schwab can afford to price it well below that because it generates revenue from multiple channels, including interest income, advisory services and order execution. Cryptocurrency exchanges lack similar diversification.
Additionally, Schwab offers a regulatory environment that exchanges do not have. Customer assets are within the long-standing SEC and FDIC oversight framework.
This level of institutional trust is attractive to many retail and older investors who remain wary of specialized crypto platforms.
ETFs add to the price pressure
Investors can already trade Bitcoin ETFs for free at Schwab and other brokerages, adding to the fee pressure.
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These ETFs also have very narrow spreads, often around 1-2 basis points. For Schwab to justify direct crypto trading, it would need to offer low fees comparable to near-free ETF execution.
Direct ownership is still advantageous because it avoids the expense ratio of ETFs. However, the benefits only become significant if transaction costs remain low. This dynamic forces Schwab to aggressively set prices, which in turn forces exchanges to respond.
A new phase in the US crypto market
Schwab’s entry reflects how traditional finance is encroaching on the realm of digital assets. With the market already moving towards a regulated structure, crypto-native companies will be under pressure for price, trust, and product access.
The full impact will depend on Schwab’s final pricing model and storage design.
However, early signs point to significant competitive pressures ahead, especially for exchanges that rely on retail trading spreads.
