Schwab Enters Crypto Market with Direct Trading for Bitcoin and Ethereum

Charles Schwab has expanded its services to include direct trading for Bitcoin (BTC) and Ethereum (ETH), allowing customers to buy and sell these cryptocurrencies on the platform. This move is significant as it marks another major step by traditional financial institutions in the rapidly growing crypto market.

The launch of 'Schwab Crypto' pits Schwab against investment platforms like Robinhood, which has gained popularity among younger investors with its combination of stock and crypto products. Schwab's decision to enter the crypto market is also a response to client demand, as many have expressed a desire to hold their crypto assets alongside their other investments.

According to Rick Wurster, CEO of Charles Schwab, some clients have up to 98% of their wealth held at Schwab and only 2% on crypto-native platforms. This has led Schwab to offer Bitcoin ETFs to its clients as a way to increase exposure to the crypto market.

The brokerage firm will charge a 0.75% fee per crypto transaction, which is lower than some other players in the industry but higher than others like Robinhood, which charges as little as 0.3%. However, this fee is still competitive and reflects Schwab's desire to attract new clients to its platform.