Charles Schwab to Introduce Bitcoin and Cryptocurrency Trading
Charles Schwab is looking to enhance its digital asset services by introducing spot trading for Bitcoin and Ethereum, as announced by CEO Rick Wurster. This strategic move aims to cater to clients seeking to manage both their traditional and digital asset portfolios through a unified platform.
It is essential to note that Schwab clients currently have a significant exposure to digital assets through exchange-traded products, constituting more than 20% of the ETP market in this sector. However, despite this exposure, digital assets represent only approximately $25 billion of Schwab clients’ total wealth amounting to $10.8 trillion.
Wurster emphasized the company’s decision, stating, “We anticipate launching Bitcoin and Ether sometime soon so that our clients have access to that. We think that will be an acceleration of our growth.” This move comes as clients tend to keep the majority of their wealth with Schwab while storing their digital assets with other providers. The goal is to consolidate these holdings within Schwab’s trusted platform.
In a bid to compete directly with established exchanges like Coinbase, Schwab is set to provide spot Bitcoin trading. Notably, the company has witnessed a substantial increase in user interest, evidenced by a 400% surge in website traffic dedicated to digital assets earlier in the year. Originally targeting an April 2026 launch for these services, Schwab’s plans have gained momentum following regulatory changes that have facilitated banks’ involvement in digital asset custody and trading.
With the reversal of restrictive guidelines by regulatory bodies such as the OCC, FDIC, and Federal Reserve, banks like Schwab are now more active in offering various bitcoin-related products, including ETFs and mutual funds.
Institutional investors are increasingly drawn to Bitcoin as an investment asset, with a survey by Coinbase and EY-Parthenon indicating that 83% of institutional investors plan to boost their bitcoin allocations in 2025. Moreover, many institutions are looking to allocate at least 5% of their portfolios to digital assets this year. Recent research further underscores the trend, revealing institutional exploration of stablecoins and other blockchain-based payment tools.
As Charles Schwab gears up to introduce spot trading for Bitcoin and Ethereum, this move signifies a broader trend of traditional financial institutions embracing digital assets to meet evolving client demands and capitalize on the growing interest in cryptocurrencies among institutional investors.
