At launch, Schwab Crypto will offer direct trading in Bitcoin and Ethereum, which the firm says together account for roughly three-quarters of total crypto market capitalization.
Schwab also plans to lean heavily on its research and investor education approach. That includes digital assets learning materials powered by the Schwab Center for Financial Research, along with crypto-focused content delivered through Schwab Coaching.
Cost is also positioned as a selling point. Schwab says pricing will be among the lowest in the industry, charging 75 basis points on the dollar value of each trade.
Paxos For Sub-Custody And Trade ExecutionVietri framed the approach as catering to two groups at once: people who are new to crypto and want to use a trusted institution, and investors who already own digital assets and want to manage them with more confidence and convenience.
Jonathan Craig, Head of Retail Investing at Charles Schwab, added that Schwab Crypto is meant to be a destination for retail customers who want direct exposure to the asset class while still benefiting from the service, educational resources, and research tools they expect from Schwab.
Schwab also outlined how the arrangement will work operationally. The company says Schwab clients will maintain a separate crypto account under Schwab Crypto, which is offered by Charles Schwab Premier Bank, CSPB, and will be linked directly to their brokerage accounts.
Schwab says Paxos will deliver these services using a federally overseen trust model and enterprise-grade technology, enabling financial institutions to provide digital asset solutions.
At the time of writing, Bitcoin, the market’s leading crypto, was trading at around $74,900. This represents a 4.5% surge in the weekly time frame. However, this surge has been halted at the $76,000 resistance level, which is the largest obstacle for BTC in the near term.
Featured image from OpenArt, chart from TradingView.com
