Charles Schwab CEO Rick Wurster recently announced in an interview with CNBC that the brokerage firm is planning to introduce Bitcoin (BTC) and Ethereum (ETH) trading for its clients. This decision comes in response to increasing demand from customers who want to see all their asset exposures in one centralized dashboard.
Wurster revealed that Charles Schwab’s clients are already heavily invested in cryptocurrencies, with more than 20% of all crypto exchange-traded products in the US held by them, totaling about $25 billion. Despite this significant investment, it only represents a small fraction of the firm’s total client balances, which amount to $10.8 trillion.
The move to offer Bitcoin and Ethereum trading is aimed at providing a one-stop solution for customers who currently hold a small portion of their wealth in specialized crypto platforms. By consolidating their crypto holdings with Charles Schwab, clients can have a holistic view of their investments alongside traditional assets like equities, bonds, and cash.
Wurster emphasized that customers trust Charles Schwab to provide secure custody for their assets, which is why they prefer to bring their crypto holdings back to the firm. The integration of crypto trading into Schwab’s platform is expected to accelerate growth as balances held elsewhere are likely to migrate once direct custody services are available.
This development also sets up a direct competition with popular crypto exchange Coinbase, as Schwab aims to attract customers who currently buy coins on Coinbase to transfer their holdings back to the brokerage. The upcoming service will complement the existing crypto exposure offered through exchange-traded products and will adhere to the same custody standards used for traditional securities.
While specific details such as fees, trade execution partners, and wallet architecture were not disclosed, Wurster assured that Charles Schwab will prioritize security and compliance in providing a seamless trading experience for cryptocurrencies. The launch date for the new service has not been confirmed, but Wurster hinted that it will be available “sometime soon.”
Overall, the integration of Bitcoin and Ethereum trading into Charles Schwab’s platform marks a significant step towards mainstream adoption of cryptocurrencies among traditional financial institutions. Customers can look forward to a seamless and secure trading experience that aligns with the firm’s commitment to providing comprehensive financial services.