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Charles Schwab plans to launch spot cryptocurrency trading in 2026, and it has become one of the most impactful moves by a major US brokerage.
The company, which oversees more than $12 trillion in client assets, intends to offer Bitcoin and Ethereum trading on its platforms after internal testing and a limited pilot phase.
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Charles Schwab will bring traditional investors to cryptocurrencies
entrance Schwab It represents a change in the way traditional brokers transact with digital assets. The company already offers indirect exposure through crypto-themed ETFs, but spot trading brings cryptocurrencies into the same environment as stocks, bonds and retirement accounts.
This could change how ordinary investors access cryptocurrencies.
How it spreads Advertising Highlight the strategic move to unify the activities of investors. Millions of Schwab customers currently hold traditional assets and use third-party cryptocurrency exchanges.
Bringing these features under one account reduces friction and strengthens Schwab’s footprint across all asset classes.
Meanwhile, another American financial giant, Vanguard also announced its expansion In cryptocurrencies last week.
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New competitive threat
Schwab’s move presents a structural challenge to… US cryptocurrency exchanges. The brokerage is known for commission-free trading of stocks and ETFs.
If you extend the same low-fee approach to cryptocurrencies, it undermines the core revenue model of companies like Quinbis and Kraken.
Cryptocurrency exchanges rely heavily on trading fees. Coinbase’s hashrate fees often exceed 1%, and even advanced platforms charge fees as high as 0.60%.
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Schwab can offer much lower rates because it generates revenue from multiple channels, including interest income, advisory services and order execution. Cryptocurrency exchanges do not have the same diversification.
Also, Schwab offers Regulatory environment Scholarships cannot be matched. Client assets fall under robust SEC and FDA oversight structures.
This level of institutional trust attracts many retail and large investors who remain wary of cryptocurrency platforms.
ETFs face the most severe price pressure
The pressure on rates intensifies because investors can actually trade Bitcoin ETFs Free on Schwab and other platforms.
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These ETFs also have very tight spreads, often around one to two basis points. To justify the direct trading of cryptocurrency, Schwab must offer low fees that rival the almost free execution of ETFs.
There is always an advantage to direct ownership because it avoids the expense ratios of ETFs. However, this benefit only matters if business costs remain low. This dynamic pushes Schwab towards aggressive pricing, thus forcing the exchanges to respond.
A new phase for the US digital currency markets
Schwab’s entry reflects how traditional finance is infiltrating the digital asset space. It puts pressure on price, trust and product access on local cryptocurrency companies at a time when markets are already shifting towards regulated structures.
The full effect depends on the final Schwab rate model and nursery design.
However, early signs indicate significant competitive pressure ahead, particularly for exchanges that rely on individual trading spreads.
