Charles Schwab, a financial powerhouse managing $12 trillion in assets, has announced its intention to initiate spot trading for Bitcoin and Ethereum in the first half of 2026. The CEO, Rick Wurster, expressed strong confidence in the company”s capacity to integrate these digital assets into its offerings.
Wurster detailed a phased approach to this launch, starting with internal testing among company employees. Following this, the trading service will be made available to a select group of customers before being rolled out to the broader investor community.
Analyst Eric Balchunas from Bloomberg raised a red flag regarding the potential implications of Schwab”s entry into the cryptocurrency market. He pointed out that Schwab”s competitive edge could significantly threaten existing crypto exchanges. “We knew this was coming. The big question: What will the fees be?” Balchunas noted. He highlighted that Schwab currently offers free trading for ETFs and stocks, suggesting that if they replicate this for cryptocurrencies, platforms like Coinbase may face considerable pressure.
Balchunas further explained that spot Bitcoin and Ethereum ETFs are already trading on a fee-free basis, with narrow spreads typically between 1-2 basis points. He cautioned that it may be challenging for Schwab to surpass this benchmark in terms of cost-effectiveness. However, he also mentioned that ETFs incur expense ratios, while directly owning cryptocurrencies eliminates such fees.
In addition to trading, Wurster indicated that acquisitions would play a crucial role in Schwab”s growth strategy. He mentioned, “If the right opportunity comes along at the right price, we would certainly consider buying a crypto company.” This statement hints at Schwab”s broader ambitions within the cryptocurrency landscape.
As Charles Schwab prepares to enter the cryptocurrency arena, the landscape may shift dramatically. The company”s substantial resources and established reputation could pose a formidable challenge to current players in the space, potentially reshaping how cryptocurrencies are traded and accessed by investors.
