Schwab Enters Crypto Market with Spot Trading Launch

Charles Schwab has made a major push into the crypto market with the launch of spot Bitcoin and Ethereum trading. The move marks a significant development in the industry, with one of the largest financial institutions in the US now offering direct access to cryptocurrencies.

The 'Schwab Crypto' brand will operate through Charles Schwab Premier Bank, with custody and settlement handled by Paxos. Employees and early-access registrants will have access first, followed by the full client base. The fees for trading are 75 basis points per trade, substantially higher than ETFs.

CEO Rick Wurster also hinted at the possibility of offering prediction markets in the future, specifically carving out financial event contracts as different from sports and politics bets. This move could further expand Schwab's presence in the crypto market.