TLDR
- Schwab stock gains as direct Bitcoin and Ethereum trading expands its platform.
- Crypto trading adds a new revenue stream across Schwab’s $13 trillion asset base.
- Schwab charges 0.75% per crypto trade with Paxos supporting execution services.
- Bitcoin and Ethereum now trade alongside stocks and ETFs within Schwab accounts.
- Strong Q2 growth gives Schwab a large retail base for expanding crypto services.
Charles Schwab (SCHW) stock gained 0.16% in pre-market trading to $109.52 after Wednesday’s 1.52% advance. The brokerage has added direct Bitcoin and Ethereum trading as it expands digital asset services. The move could strengthen trading activity and deepen engagement across Schwab’s large retail customer base.
The Charles Schwab Corporation, SCHW
Bitcoin Trading Expands Schwab’s Retail Product Offering
Schwab began rolling out direct Bitcoin trading on May 13 through its existing retail brokerage platform. Eligible customers can now trade Bitcoin alongside stocks, exchange-traded funds, bonds, and other investments. The company charges a 0.75% transaction fee for each cryptocurrency trade.
Charles Schwab Premier Bank holds customer digital assets, while Paxos provides execution and sub-custody services. Schwab initially launched the service without cryptocurrency deposits or withdrawals. However, the company started testing crypto transfers after reporting steady progress during its July earnings update.
The Bitcoin rollout reaches a large existing customer network rather than building a separate crypto platform. Schwab reported $13.08 trillion in client assets at the end of June. Meanwhile, active brokerage accounts reached 39.8 million after another 1.4 million accounts opened during the quarter.
Ethereum Trading Adds Another Growth Channel
Ethereum trading also became available through the same Schwab account during the May rollout. Customers can therefore hold direct Ethereum exposure beside traditional investments without using another trading platform. This structure supports Schwab’s strategy of keeping more customer assets inside its financial ecosystem.
Demand for digital assets had already appeared across Schwab’s existing products before direct trading launched. Customers previously held about $25 billion through cryptocurrency exchange-traded products offered on Schwab’s platform. Direct Ethereum trading now gives those customers another way to gain cryptocurrency exposure.
Schwab currently limits direct cryptocurrency trading to Bitcoin and Ethereum, with no retail staking service available. The company has also discussed stablecoins while reviewing potential opportunities across digital assets. Meanwhile, management has indicated that additional crypto services could follow as customer demand develops.
Crypto Expansion Could Support SCHW Stock Growth
Schwab entered cryptocurrency trading while its broader brokerage business continued producing strong second-quarter results. Quarterly revenue reached a record $7.1 billion, representing 21% annual growth. Daily average trades also increased 57% to 11.9 million during the period.
Core net new assets reached about $120 billion as customers continued moving money onto Schwab’s platform. That asset growth gives the company a substantial distribution channel for Bitcoin and Ethereum trading. Crypto activity could therefore add transaction revenue without requiring Schwab to create a separate customer network.
Competition has also increased as traditional financial firms expand direct cryptocurrency services. Fidelity offers crypto trading, while Morgan Stanley’s E*Trade has introduced Bitcoin, Ethereum, and Solana access. Schwab’s growing digital asset offering places the brokerage within that expanding market while supporting broader account consolidation.
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