Charles Schwab officially launched Schwab Crypto on Tuesday, enabling select US retail customers to trade Bitcoin and Ethereum directly alongside traditional investments. The $11.7 trillion brokerage is charging 75 basis points per trade, positioning itself between Coinbase’s 60 basis-point fee and Robinhood’s 95 basis-point structure. This move marks Schwab’s transition from indirect crypto exposure through ETPs and futures to direct spot trading—a significant step toward mainstream institutional adoption of digital assets for retail investors.
Schwab’s Strategic Entry Into Spot Trading
Schwab announced a phased rollout plan last month, starting with employee pilots before opening to a waitlist and eligible customers. The official Tuesday launch represents the second phase. The platform operates through separate accounts linked to brokerage accounts, with Paxos handling trade execution and sub-custody while Charles Schwab Premier Bank acts as custodian. Jonathan Craig, Head of Retail Investing at Schwab, framed the initiative as extending existing service expectations: “With Schwab Crypto, the firm seeks to allow clients who want direct access to the asset class to benefit from the service, educational resources, and research tools they expect from the company.” The platform is available in all US states except New York and Louisiana, reflecting regulatory fragmentation in crypto markets.
Competitive Pressure and Fee Positioning
Schwab’s 75 basis-point fee undercuts Robinhood but sits above Coinbase’s 60 basis-point standard. Morgan Stanley has intensified competition by launching a crypto trading pilot on E*Trade—its 8.6-million-client platform—with an even lower 50 basis-point fee. The broader crypto market currently holds $2.63 trillion in total capitalization. Schwab clients already represent roughly 20% of spot crypto ETP ownership, suggesting substantial demand within its customer base for direct trading access. This competitive clustering around sub-100 basis-point fees signals that institutional brokerages view crypto trading as a margin business, not a profit center—a structural shift from earlier retail-driven models.
Retail Adoption at a Turning Point
Schwab’s move reflects a macro trend: traditional finance is no longer testing crypto—it is integrating it. The launch of direct spot trading removes friction that previously forced retail investors toward specialist platforms like Coinbase or Robinhood. Jed Finn, Morgan Stanley’s head of wealth management, described the broader strategy as “disintermediating the disintermediators,” signaling that established brokerages aim to capture crypto trading volumes by embedding digital assets into consolidated account experiences. This structural shift threatens specialist crypto exchanges by commoditizing their primary function.
Rollout Timeline and Unresolved Variables
Schwab expects full rollout to eligible customers later in 2026. Morgan Stanley plans to expand E*Trade’s offering to tokenized equities trading in the second half of 2026. The specific number of initial Schwab Crypto customers has not been disclosed, nor has the exact timeline for additional digital assets beyond Bitcoin and Ethereum. Transfer and withdrawal capabilities details remain unclear. These gaps suggest the infrastructure is still stabilizing, and competitive positioning will likely shift as fee structures and feature sets evolve.
