A financial giant wants to offer cryptocurrency trading to its clients
November 23, 2024
Charles Schwab and its $10 trillion bank are entering the cryptocurrency market. Unlike traditional institutional firms, the company wants to let its clients trade cryptocurrencies directly!
Charles Schwab Wants to Offer Cryptocurrency Services
Charles Schwab is accelerating its development in the cryptocurrency market. At the annual Schwab IMPACT conference in San Francisco on November 21, 2024, the chairman of Charles Schwab announced that his company will expand its cryptocurrency services and investment offerings.
Rick Wurster is not yet CEO of Charles Schwab; he will take over on January 1, 2025. But the man didn't wait until he was officially in office to announce his ambitions for his company!
Charles Schwab manages just under $10 trillion on behalf of its clients, making it one of the largest investment services firms in the United States. That makes it a giant with its eyes on the cryptocurrency market.
This interest is not new. Unlike some of its competitors, Charles Schwab already offers a variety of tools to give its clients exposure to cryptocurrencies. As Rick Wurster says:
“There are many ways to invest in cryptocurrencies at Schwab: ETFs, Bitcoin futures, closed-end funds, etc. We would also like to offer cryptocurrencies directly to our clients.”
Also, according to Rick Worster, the cryptocurrency market is undermined by the fees charged by various brokers. This currently makes investing in cryptocurrencies, at least in the United States, less attractive than investing in stocks.
One factor pushing Charles Schwab in this direction is Donald Trump’s recent election victory. Bitcoin is already available in several forms at the bank, as it is in the rest of the United States since the licensing of spot Bitcoin ETFs earlier this year, and the recent arrival of options on BlackRock’s IBIT.
Although the bullish trend and explosion in the price of Bitcoin came at the perfect time to support this project. According to Charles Schwab, “60% of the new clients who join the company every year are under the age of 40.” This is the age group most attracted to cryptocurrencies.
A younger investor base, an exploding market, and regulations that are set to become more flexible—all of these factors are pushing a giant like Charles Schwab to take a stand in the crypto market. It’s not the first firm to do so, and it probably won’t be the last.
