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So, the big news now is Schwab and Vanguard are going to get into the crypto trading market. Here is the story from Yahoo.
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Why $12 Trillion Charles Schwab Crypto Entry Could Threaten US Crypto Exchanges
Mohammad Shahid
Wed, December 3, 2025 at 2:02 PM PST 3 min read
+6.15%
crypto exchange. Photo by BeInCrypto
Charles Schwab’s plan to launch spot crypto trading in 2026 is shaping up as one of the most consequential moves from a major US brokerage.
The firm, which oversees more than $12 trillion in client assets, intends to offer Bitcoin and Ethereum trading across its platforms after internal testing and a limited pilot phase.
Schwab’s entry marks a shift in how traditional brokers approach digital assets. The company already offers indirect exposure through crypto-thematic ETFs, but spot trading brings cryptocurrencies into the same environment as stocks, bonds, and retirement accounts.
The announcement also highlights a strategic push to consolidate investor activity. Millions of Schwab customers currently hold traditional assets and use external exchanges for crypto.
Bringing those functions under one account reduces friction and strengthens Schwab’s footprint across asset classes.
Meanwhile, another US financial giant, Vanguard also announced its expansion into crypto last week.
A New Competitive Threat
Schwab’s move introduces a structural challenge for US crypto exchanges. The brokerage is known for zero-commission stock and ETF trading.
If it extends the same low-fee approach to crypto, it undercuts the core revenue model of companies like Coinbase and Kraken.
Crypto exchanges rely heavily on trading fees. Coinbase’s retail fees often exceed 1%, and even advanced platforms charge up to 0.60%.
Schwab can afford to price well below that because it generates revenue from multiple channels, including interest income, advisory services, and order execution. Crypto exchanges do not have the same diversification.
Moreover, Schwab offers a regulatory environment that exchanges cannot match. Client assets sit within long-standing SEC and FDIC oversight frameworks.
This level of institutional trust appeals to many retail and older investors who remain wary of specialized crypto platforms.
Full text of the article here.
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Why $12 Trillion Charles Schwab Crypto Entry Could Threaten US Crypto Exchanges
Mohammad Shahid
Wed, December 3, 2025 at 2:02 PM PST 3 min read
+6.15%
crypto exchange. Photo by BeInCryptoCharles Schwab’s plan to launch spot crypto trading in 2026 is shaping up as one of the most consequential moves from a major US brokerage.
The firm, which oversees more than $12 trillion in client assets, intends to offer Bitcoin and Ethereum trading across its platforms after internal testing and a limited pilot phase.
Schwab’s entry marks a shift in how traditional brokers approach digital assets. The company already offers indirect exposure through crypto-thematic ETFs, but spot trading brings cryptocurrencies into the same environment as stocks, bonds, and retirement accounts.
The announcement also highlights a strategic push to consolidate investor activity. Millions of Schwab customers currently hold traditional assets and use external exchanges for crypto.
Bringing those functions under one account reduces friction and strengthens Schwab’s footprint across asset classes.
Meanwhile, another US financial giant, Vanguard also announced its expansion into crypto last week.
A New Competitive Threat
Schwab’s move introduces a structural challenge for US crypto exchanges. The brokerage is known for zero-commission stock and ETF trading.
If it extends the same low-fee approach to crypto, it undercuts the core revenue model of companies like Coinbase and Kraken.
Crypto exchanges rely heavily on trading fees. Coinbase’s retail fees often exceed 1%, and even advanced platforms charge up to 0.60%.
Schwab can afford to price well below that because it generates revenue from multiple channels, including interest income, advisory services, and order execution. Crypto exchanges do not have the same diversification.
Moreover, Schwab offers a regulatory environment that exchanges cannot match. Client assets sit within long-standing SEC and FDIC oversight frameworks.
This level of institutional trust appeals to many retail and older investors who remain wary of specialized crypto platforms.
Full text of the article here.
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