Financial services giant Charles Schwab has initiated a phased rollout of its new Schwab Crypto service, providing retail clients with direct access to spot trading for Bitcoin (BTC) and Ethereum (ETH). This marks a significant strategic shift for the firm, moving beyond indirect exposure via ETFs and derivatives to offering direct ownership of the digital assets.
The service is launching with a transaction fee of 75 basis points (0.75%) per trade. At launch, the offering comes with notable limitations: clients will not be able to deposit or withdraw their cryptocurrency. All BTC or ETH must be purchased directly through Schwab's platform, and the assets will be held in custody by Charles Schwab Premier Bank. Furthermore, the service will not be available to residents of New York or Louisiana due to state-level regulatory complexities.
The back-end trade execution is being handled by blockchain infrastructure firm Paxos, while Schwab maintains the client-facing relationship and custodial services. The rollout, which adheres to a previously signaled Q2 timetable, began after the company opened a waitlist earlier in the month.
