Charles Schwab's intention to launch spot cryptocurrency trading in 2026 is forming as one of the most significant strategic steps among leading brokerage firms in the USA.
A financial giant, managing over $12 trillion in client assets, plans to offer trading in Bitcoin and Ethereum on its platforms. This will be preceded by an internal testing phase and a limited pilot project.
Charles Schwab will bring mass investors to the crypto market
Schwab's emergence in the market signals a fundamental transformation in traditional brokers' approaches to digital assets. Previously, the company only provided clients with indirect access to the market through thematic exchange-traded funds (ETFs). The introduction of spot trading integrates cryptocurrencies into the same ecosystem that includes stocks, bonds, and retirement accounts. Such integration could fundamentally change the mechanisms for accessing digital assets for the mass investor.
This announcement reflects the company's strategic ambition to consolidate investment activity. Millions of Schwab clients who hold traditional assets are forced to use third-party exchanges for cryptocurrency transactions. Integrating these functions into a single brokerage account will significantly reduce transaction costs and strengthen Schwab's market position across all asset classes. It is worth noting that at the same time, another major U.S. financial conglomerate, Vanguard, has also announced an expansion of its presence in the cryptocurrency segment.
Charles Schwab's move represents a structural challenge for American crypto exchanges. The brokerage firm is known for its model of trading stocks and ETFs with zero commissions. If Schwab applies a similar approach to cryptocurrencies, it will undermine the foundational profit model of companies like Coinbase and Kraken.
Cryptocurrency exchanges critically depend on trading fees. Fees for retail clients on Coinbase often exceed 1%, while advanced platforms charge up to 0.60% per trade. Schwab, on the other hand, has the ability to set significantly lower rates. This is due to the fact that the company generates revenue from multiple channels: interest income, advisory services, and order execution. Crypto exchanges do not have such diversified profit sources.
Furthermore, Schwab offers a regulatory environment that is unavailable to most specialized crypto platforms. Client assets will be under the long-term supervision of the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC). Such a high level of institutional trust is attractive to many retail and more conservative investors, who approach native crypto services with caution.
Increasing price pressure from ETFs
Price pressure on the market is further intensified by the fact that investors can already trade Bitcoin ETFs without commission on Schwab and other brokers' platforms. These ETFs also feature minimal spreads, often comprising just 1–2 basis points.
To justify the launch of direct crypto trading, Schwab needs to offer low fees that are competitive with nearly free execution of ETF trades. Direct ownership of crypto assets certainly has its advantages, as it eliminates the fund management fee (expense ratio). However, this factor only matters if low operating costs for trading are maintained. This dynamic forces Schwab into an aggressive pricing policy, which in turn will compel U.S. crypto exchanges to respond.
A new phase of development in the U.S. market
Charles Schwab's entry into the market reflects the trend of traditional financial institutions penetrating the digital asset segment. This creates significant pressure on native crypto companies across three key parameters: price, trust, and product accessibility. All this is happening against the backdrop of a general market movement towards more regulated structures.
The full effect of this step will depend on Schwab's final fee model and asset custody scheme. However, the initial signs indicate a significant increase in competition. This is especially relevant for exchanges whose profitability critically depends on retail trading spreads.
