Why $12 Trillion Charles Schwab Crypto Entry Could Threaten US Crypto Exchanges

Charles Schwab, managing over $12 trillion in assets, plans to introduce spot Bitcoin and Ethereum trading by 2026, marking a significant move for mainstream finance into digital assets. This entry aims to consolidate investor activity by allowing clients who currently use external exchanges to trade crypto alongside traditional assets within Schwab's platform, reducing friction. This poses a structural threat to US crypto exchanges like Coinbase and Kraken because Schwab is known for zero-commission trading and can afford to undercut the high trading fees (often over 1%) that exchanges rely on for revenue, as Schwab has diversified income streams like interest and advisory services. Furthermore, Schwab benefits from established SEC and FDIC regulatory oversight, which appeals to wary traditional investors. The pressure is intensified by the existence of commission-free Bitcoin ETFs, forcing Schwab toward aggressive low pricing for direct ownership to remain competitive, which in turn pressures crypto exchanges to lower their own fees.

(Source：BeInCrypto)