Charles Schwab, the brokerage that manages roughly $12 trillion in client assets, began the phased rollout of direct bitcoin and ether trading to U.S. retail customers on May 13, 2026. The new service, branded Schwab Crypto, is offered through Charles Schwab Premier Bank, with Paxos providing sub-custody and trade execution. Pricing starts at 75 basis points per trade, and access is limited to clients in all U.S. states except New York and Louisiana, according to Schwab’s announcement. For business readers tracking institutional Web3 adoption, this marks one of the largest traditional brokerages in the country crossing the line from indirect crypto exposure to direct spot custody.
Spot crypto trading refers to buying and selling actual bitcoin or ether for immediate ownership, rather than trading futures contracts or shares of exchange-traded products that hold the asset on a client’s behalf.
Key takeaways
- Schwab Crypto launched May 13, 2026, offering direct bitcoin and ether trading to a first wave of retail clients with a 75-basis-point per-trade fee.
- Charles Schwab Premier Bank holds digital assets as custodian, while OCC-regulated Paxos provides sub-custody and execution.
- The service is available in every U.S. state except New York and Louisiana, and Schwab clients already hold roughly 20% of all spot crypto ETP assets.
- Schwab plans to add more cryptocurrencies, plus deposit and withdrawal transfers, over time.
Published: May 13, 2026 16:00 UTC
Why Schwab is moving now
Schwab announced the offering in April 2026, telegraphing a phased launch in the coming weeks. The first eligible retail clients gained access this week through Schwab.com, Schwab Mobile, and the thinkorswim trading platform, per CoinDesk’s reporting. The timing tracks a broader shift among legacy financial firms toward direct digital asset products, following BlackRock and Fidelity’s spot ETF dominance and a regulatory environment that has softened under SEC Chair Paul Atkins.
The competitive pressure is concrete. Robinhood, Fidelity, and Interactive Brokers all offer spot crypto trading to retail customers. Schwab’s prior position, which limited clients to crypto ETPs, futures, and indirect funds, was losing ground to firms that allowed direct purchases. With clients already holding around 20% of all U.S. spot crypto ETP assets according to the company, the demand was demonstrably present inside Schwab’s existing book.
What changes for Web3 and traditional finance
The Schwab launch matters less as a product release and more as an integration milestone. A brokerage with $12 trillion in client assets routing real bitcoin and ether transactions through Paxos puts the OCC-regulated trust company in front of a retail audience that has never touched a self-custody wallet. Paxos handles the on-chain execution; Schwab handles the front end. For Web3 builders, this is the on-ramp scale that protocols have been waiting on.
It also reshapes the competitive map for crypto-native exchanges. Coinbase, Kraken, and Gemini have spent years building retail brand recognition. Schwab’s brand recognition is already there, along with 24/7 support staff and a stock-and-crypto unified view inside thinkorswim. Crypto-native exchanges still hold advantages in token selection, staking products, and DeFi integrations, but for a customer who wants bitcoin alongside an S&P 500 index fund, the friction just dropped.
How the custody structure works
Schwab Crypto accounts sit separately from brokerage accounts but link directly to them. Charles Schwab Premier Bank, SSB, holds custody of the digital assets. Paxos, regulated by the Office of the Comptroller of the Currency as a national trust company, provides sub-custody and the execution layer that touches the blockchain. The structure is designed to keep client assets off Schwab’s balance sheet and inside a regulated trust framework, which mirrors how spot bitcoin ETFs handle their underlying holdings.
Clients cannot yet transfer existing crypto holdings into a Schwab Crypto account, and they cannot withdraw to an external wallet. Schwab says both deposits and withdrawals are on the roadmap. That detail matters: until self-custody transfers are live, Schwab Crypto functions more like an ETP wrapper than a true crypto account.
What to watch next
Three things to track over the next quarter. First, how fast Schwab expands beyond bitcoin and ether, since the company has signaled additional cryptocurrencies are planned. Second, when deposit and withdrawal capabilities go live, which determines whether Schwab Crypto becomes a one-way wrapper or a real bridge to and from the broader Web3 economy. Third, whether New York and Louisiana clearances follow, since the missing two states represent meaningful retail wealth.
For Web3 founders, the takeaway is that mainstream brokerage rails are now open at scale. For traditional finance, the takeaway is that a competitor with the deepest book in the U.S. is no longer treating spot crypto as a regulatory liability.
FAQ
What is Schwab Crypto and when did it launch?
Schwab Crypto is a spot trading service offered by Charles Schwab Premier Bank that gives retail clients direct access to bitcoin and ether. Schwab announced the offering in April 2026 and began phased rollout to retail clients on May 13, 2026, starting with an initial wave of approved users.
How much does Schwab Crypto cost to trade?
Schwab Crypto charges 75 basis points, or 0.75%, on the dollar value of each trade. That sits below the headline rates of many crypto-native exchanges but above the near-zero commission Schwab clients pay on equity trades.
Can I move crypto in or out of a Schwab Crypto account?
Not yet. At launch, clients can buy and sell bitcoin and ether inside the Schwab Crypto account but cannot deposit existing crypto holdings or withdraw to an external wallet. Schwab says transfer capabilities are coming, with no firm date provided.
