Charles Schwab Launches Bitcoin and Ethereum Trading for 39 Million Clients, But Without Key Protections

Charles Schwab has announced it will begin selling Bitcoin and Ethereum directly to its 39 million brokerage clients. These cryptocurrencies will appear alongside traditional assets like stocks, ETFs, and retirement funds within the same app and account interface, accessible with a single click from familiar options such as the S&P 500 index fund.

This integration marks a significant shift in how mainstream American investors interact with crypto. However, the arrangement introduces a critical distinction: the protections offered with these assets differ markedly from those customers expect from Schwab’s traditional products.

According to Schwab’s disclosures, the cryptocurrencies sold on its platform are not deposits, not FDIC-insured, not SIPC-protected, not backed by any central bank, and carry the risk of total loss of principal. This gap between perception and reality underscores the unique risks of crypto within a trusted financial environment.

The new product, called Schwab Crypto, will launch in phases over the coming weeks. Initially, it will support only two assets: Bitcoin and Ethereum, which together represent roughly three-quarters of the total crypto market capitalization.

While the exclusion of altcoins like Solana and XRP disappointed some in the crypto industry, Schwab’s decision reflects a calculated approach. Managing $12.2 trillion in client assets, the firm has ample incentive to avoid the volatility and headline risk associated with speculative tokens, particularly within retirement accounts.

Trading fees for Schwab Crypto are set at 75 basis points (0.75%), positioning the service competitively against platforms like Fidelity Crypto ($1 fee) and Robinhood, though still higher than Schwab’s near-zero commissions for stocks. Execution and sub-custody will be handled by Paxos, a federally regulated blockchain infrastructure provider.

A separate crypto account, offered through Charles Schwab Premier Bank, will be linked to the regular brokerage account. However, residents of New York and Louisiana will be excluded at launch. Additionally, deposits and withdrawals of outside crypto will be disabled, meaning customers can only trade assets purchased through Schwab.

This move is more consequential than typical crypto industry developments because Schwab serves as the custodian for ordinary Americans’ retirement savings, college funds, and lifelong capital. Its brand is synonymous with regulation, familiarity, and stability—qualities that carry significant weight in finance.