Financial behemoth Charles Schwab is diving headfirst into crypto trading. The $10.7 trillion giant just announced plans to offer Bitcoin and Ethereum spot trading by 2025, and crypto-native platforms like Coinbase might want to start sweating.
Schwab isn’t messing around. They already manage 20% of the crypto ETP market, but that’s just the appetizer. CEO Rick Wurster says the move comes “sometime soon,” driven by relentless client demands to bring their crypto trading under one roof. And why not? Their clients currently park 98% of their wealth with Schwab anyway. The company’s strategy focuses on fostering client trust through strict compliance measures.
Schwab’s dominance in crypto ETPs signals their serious crypto ambitions, with loyal clients already trusting them with nearly all their wealth.
The timing couldn’t be better. With clearer U.S. regulations, including the GENIUS Act for stablecoins, Schwab’s entry feels less like a gamble and more like calculated precision. Their $25 billion in current crypto holdings might seem tiny compared to their total assets, but that’s about to change dramatically. The company’s recent quarterly profit increased by 60%, showing their financial strength heading into this crypto venture.
Here’s where it gets interesting for Coinbase. Schwab isn’t just another newcomer – they’re bringing decades of trust, a massive institutional client base, and bulletproof compliance infrastructure to the crypto party. The platform will likely implement cold storage security to protect customer assets. That’s a combo that could make crypto-native exchanges nervous. Really nervous.
The math is simple: Schwab clients want their crypto and traditional investments in one place. They’re tired of juggling multiple platforms. When a trusted name like Schwab offers to consolidate everything, that’s a game-changer. The company’s eyeing that 1-2% of client portfolios currently sitting in external crypto exchanges, and they’re not being subtle about it.
Schwab’s regulatory experience gives them a serious edge. While crypto-native platforms navigate the regulatory maze, Schwab’s been dancing this dance for decades. Their transparent, regulated platform might just be what mainstream investors have been waiting for.
The crypto world is about to get a lot more interesting. When an $8 trillion giant decides to play in your sandbox, you pay attention. Coinbase, the ball’s in your court.
