Charles Schwab Enters Direct Crypto Market with New Trading Arm

Charles Schwab announced on Thursday the launch of "Schwab Crypto," a dedicated arm allowing retail clients to trade Bitcoin and Ethereum directly. The initiative responds to sustained client demand for digital asset access and positions the firm against fintech competitors like Robinhood, which has historically attracted a younger investor base. The new capability is expected to be available to clients in the coming weeks. According to Jonathan Craig, head of retail investing at Charles Schwab, the goal is to allow clients to conduct more of their financial lives within the Schwab ecosystem, providing the research and education the firm is known for alongside direct asset access. From a pricing perspective, Schwab will implement a 0.75% transaction fee on every trade. This distinguishes its model from Robinhood, which continues to offer commission-free trading, and Coinbase, which utilizes a tiered fee structure. To ensure security and regulatory compliance, Schwab is partnering with Paxos for custody, meaning crypto funds will be held in accounts separate from traditional brokerage holdings. Despite the strategic expansion, Schwab shares declined by 2% on Thursday. This price action followed the release of the company's quarterly financial results rather than the crypto announcement itself. The move signals a broader trend of traditional financial institutions integrating digital assets to prevent client attrition to neo-brokerages.