Charles Schwab’s Crypto Plan In Stages—Major Platform Details Announced

Charles Schwab has shared more specifics about its upcoming “Schwab Crypto” platform, giving eligible customers a path to buy and sell bitcoin (BTC) and Ethereum (ETH) directly. 

Schwab Crypto’s Roadmap

At launch, Schwab Crypto will offer direct trading in Bitcoin and Ethereum, which the firm says together account for roughly three-quarters of total crypto market capitalization. 

However, Schwab indicated that it intends to add additional cryptocurrencies to the platform in the future. The firm also plans to introduce transfer capabilities for deposits and withdrawals, so clients with digital asset holdings elsewhere can bring their investments into Schwab alongside their other accounts.

Schwab also plans to lean heavily on its research and investor education approach. That includes digital assets learning materials powered by the Schwab Center for Financial Research, along with crypto-focused content delivered through Schwab Coaching. 

The goal, according to the company, is to help investors better understand how digital assets work and how they may fit into a broader investing strategy rather than treating crypto as a separate world.

Cost is also positioned as a selling point. Schwab says pricing will be among the lowest in the industry, charging 75 basis points on the dollar value of each trade. 

Paxos For Sub-Custody And Trade Execution 

Joe Vietri, Head of Digital Assets at Charles Schwab, said the firm aims to give investors access to well-known cryptocurrencies through an “all-in-one investing and banking experience,” supported by education and the operational backing of Schwab’s ecosystem. 

Vietri framed the approach as catering to two groups at once: people who are new to crypto and want to use a trusted institution, and investors who already own digital assets and want to manage them with more confidence and convenience. 

Jonathan Craig, Head of Retail Investing at Charles Schwab, added that Schwab Crypto is meant to be a destination for retail customers who want direct exposure to the asset class while still benefiting from the service, educational resources, and research tools they expect from Schwab.

Schwab also outlined how the arrangement will work operationally. The company says Schwab clients will maintain a separate crypto account under Schwab Crypto, which is offered by Charles Schwab Premier Bank, CSPB, and will be linked directly to their brokerage accounts. 

CSPB will act as custodian for clients’ digital assets, handling safekeeping and record-keeping. For sub-custody and trade execution, Schwab selected Paxos, a blockchain infrastructure provider regulated in the country. 

Schwab says Paxos will deliver these services using a federally overseen trust model and enterprise-grade technology, enabling financial institutions to provide digital asset solutions.

At the time of writing, Bitcoin, the market’s leading crypto, was trading at around $74,900. This represents a 4.5% surge in the weekly time frame. However, this surge has been halted at the $76,000 resistance level, which is the largest obstacle for BTC in the near term. 

Featured image from OpenArt, chart from TradingView.com