Have you heard that Charles Schwab is preparing to launch spot trading for Bitcoin and Ethereum? Yes, you heard that right! One of the largest brokerage firms in the U.S., with assets totaling $10.7 trillion, is about to offer its clients the opportunity to trade cryptocurrencies directly on its platform. This is a huge milestone for the industry, as Schwab isn’t just offering traditional financial instruments anymore—they are entering the crypto world, which will undoubtedly shake up the market.
What is Spot Trading and Why Does Schwab Need It?
First, let’s break down what spot trading means. Unlike futures or contracts for difference (CFDs), spot trading allows buying and selling of cryptocurrency at the current market price with immediate settlement. It’s much simpler and more convenient for investors who want to own actual coins rather than derivatives.
Rick Wurster, Schwab’s CEO, recently announced that clients will soon be able to not only invest in crypto through ETFs (Exchange-Traded Funds) but also trade actual Bitcoin and Ethereum coins. Ultimately, Schwab wants to be the one-stop shop for managing all assets, including traditional and crypto, in one safe place.
Why Is Schwab Making This Move?
Currently, cryptocurrencies make up only about $25 billion of Schwab’s total assets, which is relatively small compared to the $10.8 trillion in assets they manage. However, Schwab sees huge potential for growth, and this move allows them to expand their offerings and capture a slice of the crypto market. Many Schwab clients are already investing in Bitcoin and Ethereum via ETFs. Now, with the ability to trade spot coins, the company has a chance to strengthen its position in the market.
Let’s be honest, this decision is driven by the desire not to fall behind. Moreover, recent regulatory changes in the U.S., such as the GENIUS Act passing, which simplifies the regulation of stablecoins, provide Schwab with the perfect environment to enter the crypto market.
How Will Schwab Compete with Coinbase?
By entering the spot crypto trading market, Schwab will directly compete with platforms like Coinbase. Currently, Coinbase and other crypto exchanges are leading the way in digital asset trading. However, Schwab has a few key advantages:
Large Client Base — Schwab serves tens of millions of clients, many of whom are already familiar with the platform. For them, trading Bitcoin or Ethereum on the same account where they manage stocks, ETFs, and bonds is incredibly convenient.
Security and Reliability — Schwab has a reputation as a stable, trusted financial institution, unlike some crypto exchanges, which have faced security concerns.
Integrated Asset Management — Clients will be able to manage not only stocks, bonds, and ETFs but also cryptocurrencies all in one place, which significantly enhances convenience.
Institutional Interest in Cryptocurrencies
Schwab isn’t alone in this move. According to a survey by Coinbase and EY-Parthenon, 83% of institutional investors plan to increase their cryptocurrency investments in 2025. This isn’t just a trend—cryptocurrencies are becoming an increasingly standard part of institutional portfolios. XRP and Solana are expected to be favorites, and 90% of institutions are already using or testing stablecoins.
For Schwab, this is also a signal that the crypto market is no longer just a speculative asset class but an essential part of the financial ecosystem, and they want to be ready for this shift.
How Schwab is Profiting from This Shift
Despite the global decline in spot crypto trading volumes last quarter, Schwab continues to show impressive financial results. Their quarterly profit grew by 60%, client assets increased by 14%, and trading revenue rose by 23%. This includes high activity due to news about new tariffs in the U.S. and, of course, the growing interest in cryptocurrencies.
Looking long-term, for Schwab, cryptocurrencies are no longer just an added feature—they are becoming a core part of their business strategy moving forward.
Conclusion: What’s Next for Schwab and the Crypto Market?
In short, Charles Schwab is gearing up to seriously compete with leading crypto exchanges. For us, the investors, this is a great opportunity to access a convenient and reliable platform for trading cryptocurrencies without having to jump to third-party exchanges.
Question: Do you think large brokers like Schwab will eventually outpace crypto exchanges and become the main players in the cryptocurrency market? Or will users still prefer specialized platforms for trading digital assets?
