Charles Schwab plans to launch spot crypto trading by April 2026, reflecting growing investor interest. Despite this move, the company cautions potential investors about the risks of crypto asset depreciation. Schwab’s entry into crypto stands in contrast to rivals like Robinhood and Kraken, who are advancing rapidly in the market.
Charles Schwab is set to introduce spot crypto trading features within the next year. This marks a significant change for the platform, which has historically adopted a cautious approach regarding cryptocurrencies. Despite this upcoming venture, Schwab’s website continues to caution that crypto assets could potentially lose all their value.
CEO Rick Wurster announced that Schwab anticipates offering spot crypto trading, including Bitcoin, by April 2026, driven by increasing investor interest and a more favourable regulatory environment. He noted a 400% increase in traffic to the crypto section of the website, with 70% originating from non-client visitors.
Currently, Schwab provides indirect exposure to cryptocurrencies through third-party exchange-traded funds, Bitcoin futures, and closed-end funds. The new features will enable clients to buy and sell actual digital currencies like Bitcoin, marking a significant advancement in their service offerings.
Despite the expansion into crypto, Schwab maintains serious warnings regarding the associated risks. The company asserts that due to the inherent volatility of cryptocurrencies, there is a risk of total loss of investment, stating that many digital assets lack intrinsic value, as they do not possess fundamental indicators like earnings or sales ratios.
Schwab’s cautious entry into the digital asset market contrasts sharply with competitors such as Fidelity, Robinhood, and Kraken, which are fully engaged in the convergence of crypto and equity markets. Robinhood has experienced a 700% increase in crypto-related revenue recently, while Kraken has introduced stock trading for a wide range of US equities.
Pressure from competitors is mounting, especially as a Schwab survey from late 2024 revealed that 62% of millennial investors plan to invest in cryptocurrency in the upcoming year, surpassing allocations for stocks or bonds. Wurster remarked that younger investors prefer to connect with established brands, positioning Schwab as a trusted firm.
Moreover, this new crypto focus coincides with Schwab’s recent collaboration with Trump Media & Technology Group to develop new investment products. The SEC’s new Chair, Paul Atkins, is expected to streamline compliance requirements for brokerages engaging in crypto, indicating a positive trend for crypto market participants.
