Schwab Enters Crypto Trading Scene with Spot Platform Launch

Charles Schwab, a leading financial services company, has launched its spot crypto trading platform, Schwab Crypto. This move marks a significant expansion of the firm's previous crypto offerings, which were limited to indirect exposure through exchange-traded funds and derivatives.

The new platform allows clients to trade Bitcoin and Ethereum directly through dedicated crypto accounts linked to their existing brokerage accounts. However, there are some restrictions in place at launch: crypto deposits and withdrawals will not be available, and New York and Louisiana residents will not have access.

Schwab Crypto will charge 75 basis points per transaction, with Charles Schwab Premier Bank acting as custodian and Paxos handling trade execution. The firm plans to add more cryptocurrencies and enable transfers over time, although no specific timeline was provided for either development.