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Guavy AI Editorial Team••Sentiment: 3•Clout: 82

Schwab Crypto Marks New Era in Direct Spot Cryptocurrency Trading

BTCETH

Charles Schwab's entry into the direct spot cryptocurrency market has been anticipated by many in the industry. The firm's new platform, Schwab Crypto, marks a significant shift from its previous indirect offerings such as spot ETFs and crypto futures. This move will allow U.S. retail clients to trade Bitcoin (BTC) and Ethereum (ETH) directly.

The platform is accessible to over 39 million account holders in most states except New York and Louisiana, where the service is not available at launch. To use Schwab Crypto, clients must create a fresh crypto account linked to their existing brokerage profiles. This new account will be custodied by Charles Schwab Premier Bank, while Paxos will handle trade execution.

The trading fee for each transaction is set at 75 basis points, or 0.75% of the dollar value. According to Jonathan Craig, Head of Retail Investing, this move caters to client demand for direct access to cryptocurrency alongside other investments. The company conducted a survey of nearly 500 current and prospective crypto investors in 2025, identifying trust, low pricing, and security as top factors when choosing a trading platform.

Schwarz's interest in cryptocurrencies is not new, but this marks its first foray into direct spot ownership. The firm has been offering indirect products like ETFs and futures up until now. Joe Vietri, Schwab's Head of Digital Assets, stated that the goal is to become 'the destination of choice for retail investors' looking to confidently incorporate digital assets into their portfolios.

The impact of this move on the cryptocurrency market remains to be seen, but it aligns with a trend of traditional financial firms increasing their presence in crypto. The rollout comes as several major banks have begun offering Bitcoin-related services or planning to do so shortly. Furthermore, Congress is nearing an agreement on the CLARITY Act, which could reshape the competitive environment for firms like Charles Schwab entering the cryptocurrency space.