Nikolas Sargeant
Charles Schwab is positioning itself to compete directly with crypto-native exchanges by launching spot trading services for Bitcoin and Ethereum, CEO Rick Wurster announced during a CNBC interview. The move represents a significant expansion of the financial giant's cryptocurrency offerings as it seeks to capture more of its clients' digital asset investments.
Wurster revealed that Schwab clients already hold substantial exposure to cryptocurrency through exchange-traded products, owning more than 20% of the industry's crypto ETP market. Despite this significant market share, crypto assets still represent a relatively small portion of clients' total wealth, approximately $25 billion out of Schwab's $10.8 trillion in managed assets.
The CEO emphasized that many Schwab clients currently maintain most of their traditional assets with the firm while keeping their cryptocurrency holdings with digital-native platforms like Coinbase. "They really want to bring it back to Schwab because they trust us. They want us to sit alongside their other assets," Wurster explained, highlighting the opportunity for consolidation.
The announcement builds on Schwab's previously announced timeline targeting April 2026 for spot Bitcoin trading services, though Wurster's latest comments suggest the launch could happen sooner. The move comes amid improving regulatory conditions for traditional financial institutions entering the cryptocurrency space. Recent changes by federal banking regulators, including the withdrawal of restrictive guidelines implemented after the FTX collapse, have created a more favorable environment for banks to participate in crypto custody and trading activities.
Mainstream Financial Institutions Embrace Crypto
Schwab's entry into direct cryptocurrency trading reflects a broader wave of institutional adoption sweeping through traditional finance. Bitcoin recently set a new all-time high of $118,403 as institutional appetite continues to grow, demonstrating the increasing confidence of large investors in digital assets. Meanwhile, other major financial institutions are expanding their crypto services, with JPMorgan recently filing trademarks for cryptocurrency and stablecoin services, signaling its own plans for deeper involvement in the digital asset ecosystem. Surveys indicate that 83% of institutional investors plan to increase their crypto holdings in 2025, underlining the momentum behind this institutional shift.
