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Charles Schwab is rolling out crypto trading, allowing clients to buy bitcoin and ether through a new arm called Schwab Crypto, the company said Thursday.
The move places the brokerage in direct competition with companies like Robinhood, which serves a comparitively younger clientele and also blends stock and crypto investing (as well as an array of other financial services now) — as well as Coinbase, which now allows customers to trade stocks as well as crypto.
Schwab, one of the largest brokerages in the world with more than $11 trillion in client assets, has been vocal for months about its clients’ interest in crypto investing. The capability will be available in the coming weeks.
“We know our clients want to conduct more of their financial lives at Schwab,” Jonathan Craig, head of retail investing at Charles Schwab, said in a statement. “With Schwab Crypto, clients who want direct access to the asset class can trade it alongside their other investments, while benefiting from the service, education, and research they expect from us.”
The move further blurs the line between the traditional financial industry and the growing world of crypto assets and digital finance. Schwab is the latest example of increasing crypto acceptance by major banks, asset managers, and brokers – who may have spent years waiting on the sidelines to launch crypto offerings and feel better able to do so given the Trump administration’s friendly regulatory stance toward the new industry.
In recent days, Morgan Stanley launched a spot bitcoin ETF, the Morgan Stanley Bitcoin Trust, and Goldman Sachs filed to launch a bitcoin income ETF.
The company will take a 0.75% fee on every trade. By comparison, Robinhood still offers commission-free trading, and fees at Coinbase vary based on tier but can be as high as 4% for retail customers. Schwab is partnering with Paxos on custody, which will allow crypto funds to sit in a separate Schwab account separate from the brokerage.
Schwab shares were lower by 5% on Thursday, weighed down by its first-quarter revenue miss reported earlier in the morning.
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