Key Takeaways
Schwab Crypto will let selected retail clients trade bitcoin and ethereum through linked accounts.Clients will use separate Schwab Crypto accounts offered by Charles Schwab Premier Bank, SSB, which will custody digital assets.Future updates may add more cryptocurrencies, deposits, and withdrawals for existing digital assets.
Schwab Crypto Begins Retail Rollout
Financial giant Charles Schwab announced on May 12 that Schwab Crypto accounts are now being rolled out to retail clients. The first group of clients can trade bitcoin ( BTC) and ethereum ( ETH) at Schwab alongside their other investments, with additional users able to sign up for updates and a chance at early access.
Retail clients will maintain a separate Schwab Crypto account offered by Charles Schwab Premier Bank, SSB. The account links directly to their Schwab brokerage accounts. Charles Schwab Premier Bank will custody client digital assets and handle safekeeping and record-keeping. Paxos will provide sub-custody and trade execution services. At launch, Schwab Crypto includes bitcoin and Ethereum trading, education, research, Schwab Coaching content, and 24/7 phone or chat support. Pricing is 75 basis points on each trade’s dollar value.
Charles Schwab explained in an April press release: “Schwab Crypto will provide direct access to bitcoin and ethereum trading, combined with educational content and experienced professional support all at a great value.”
Direct trading will appear across Schwab.com, Schwab Mobile, and thinkorswim. The company also outlined plans to add more cryptocurrencies over time. Future transfer features are expected to include deposits and withdrawals, allowing clients with existing digital assets to bring them to Schwab.
Schwab Pairs Spot Crypto Access With Existing Products
Existing crypto access at Schwab extends beyond spot trading. Clients can use exchange-traded products (ETPs), crypto futures, options on spot crypto ETPs, crypto-related exchange-traded funds (ETFs), mutual funds, OTC trusts, and digital asset-linked equities. Among the investments available are Coinbase (Nasdaq: COIN), Strategy (Nasdaq: MSTR), Riot Platforms (Nasdaq: RIOT), and Schwab Crypto Thematic ETF (NYSEARCA: STCE).
Investor eligibility remains limited. Schwab Crypto accounts are available in U.S. states except New York and Louisiana. They are not available in U.S. territories or international jurisdictions. Applicants remain subject to review and approval, and accounts may be restricted or closed after moves to unsupported locations. The financial giant noted:
“ETPs available at Schwab provide exposure to cryptocurrencies, cryptocurrency futures contracts, and companies that are focused on servicing the cryptocurrency market and digital assets.”
The rollout expands Schwab’s existing digital asset offerings while the firm continues developing additional crypto functionality. Planned features include broader cryptocurrency support and transfer capabilities for client deposits and withdrawals. Risk disclosures accompanying the launch stated that digital assets remain speculative investments that can lose their full value.
