Schwab Adds Bank-Custodied Bitcoin and Ether Trading
Schwab customers can trade bitcoin and ether through a bank-custodied account instead of a crypto exchange wallet.
Schwab customers can trade bitcoin and ether through a bank-custodied account instead of a crypto exchange wallet.
Watch whether Schwab adds transfers, more states, or more coins beyond bitcoin and ether.
company statement + The Block
The News
Charles Schwab (SCHW) on 2026-04-16 announced Schwab Crypto, a phased-rollout spot trading service for bitcoin and ether, opening to retail clients in the coming weeks across all U.S. states except New York and Louisiana, with no availability in U.S. territories or international jurisdictions. The crypto account is held at Charles Schwab Premier Bank, SSB (CSPB), Schwab's bank subsidiary, and links directly to each client's existing brokerage account. CSPB serves as custodian of clients' digital assets, responsible for safekeeping and record-keeping. Paxos Trust Company, an OCC-regulated blockchain infrastructure provider, provides sub-custody and trade execution. Pricing is disclosed at 75 basis points on the dollar value of each trade. At launch, deposits and withdrawals of digital assets are disabled; clients must purchase any bitcoin or ether they want to trade directly through Schwab.
The Bottom Line for Investors
Schwab is letting some retail customers buy bitcoin and ether inside an account connected to their regular brokerage relationship. The important difference is custody: the crypto account sits at Schwab's bank subsidiary, while Paxos handles sub-custody and trade execution.
Who Is Affected
Charles Schwab (SCHW) is the named operator of Schwab Crypto. Charles Schwab Premier Bank, SSB (CSPB) is the bank custodian and record-keeper of client digital assets. Paxos Trust Company is the OCC-regulated sub-custodian and execution provider. Schwab discloses approximately $12.22 trillion in client assets and nearly 39 million active brokerage accounts as of early 2026, alongside the disclosure that its clients hold approximately 20 percent of spot crypto exchange-traded products. The Block names Coinbase Global (COIN) and Robinhood Markets (HOOD) as direct retail competitors. The second-order spot crypto ETP set named in the brief includes BlackRock iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), and Grayscale Bitcoin Trust (GBTC).
Facts We Checked
- Schwab Crypto will begin a phased rollout to retail clients in the coming weeks, providing direct access to bitcoin and ethereum trading. Charles Schwab Pressroom
- Bitcoin and ethereum together represent approximately three-quarters of the crypto market capitalization. Charles Schwab Pressroom
- Pricing is among the lowest in the industry at 75 basis points on the dollar value of each trade. Charles Schwab Pressroom
- Schwab clients will maintain a separate crypto account through Schwab Crypto, offered by Charles Schwab Premier Bank, SSB (CSPB), linked directly to their brokerage accounts. Charles Schwab Pressroom
- CSPB will serve as the custodian of clients' digital assets, responsible for safekeeping and record-keeping. Charles Schwab Pressroom
- Paxos, a leading OCC-regulated blockchain infrastructure provider, will deliver sub-custody and trade execution services. Charles Schwab Pressroom
- Schwab is already a leader in digital assets, with clients holding approximately 20% of spot crypto exchange-traded products. Charles Schwab Pressroom
- Schwab Crypto accounts are available in all U.S. states except for New York and Louisiana and are not available in any U.S. territories or in any international jurisdictions. Charles Schwab Pressroom
- Depositing and withdrawing digital assets will be disabled on launch; clients will have to purchase any BTC or ETH that they want to trade directly through Schwab. The Block
- Schwab said it plans to expand the platform over time, including adding more cryptocurrencies and enabling transfers, but no specific timeline was offered. The Block
- Schwab reported $12.22 trillion in client assets and nearly 39 million active brokerage accounts as of early 2026. The Block
- The new platform puts Schwab more directly in competition with crypto-native platforms such as Coinbase and retail trading apps like Robinhood. The Block
What Could Happen Next
The 75 basis points retail fee disclosed by Schwab now sits as a public anchor against which Coinbase Global (COIN) and Robinhood Markets (HOOD) can be measured on retail spot crypto pricing. The bank-custody plus OCC-regulated sub-custody pattern is a template other custodian-tier U.S. brokerages can replicate without building proprietary blockchain infrastructure. Existing spot crypto ETPs — BlackRock iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), and Grayscale Bitcoin Trust (GBTC) — now share shelf space inside the same Schwab account with direct spot bitcoin and ether positions, altering the substitution surface for the 20% of spot crypto ETP holdings Schwab clients already control. Asset transfers remaining disabled at launch means existing on-chain bitcoin and ether held outside Schwab cannot move into Schwab Crypto without first being sold and re-purchased through the platform.
What to Watch Next
What Not to Assume
This launch does not authorize digital-asset deposits or withdrawals at announcement; clients can only trade bitcoin and ether purchased directly through Schwab. The announcement does not establish revenue timing, asset-gathering metrics, or any directional view on Charles Schwab (SCHW), Coinbase Global (COIN), Robinhood Markets (HOOD), or any spot crypto ETP. It does not imply regulatory approval of any other brokerage's pending crypto offering and does not state when, if ever, additional cryptocurrencies, transfers, or excluded jurisdictions will be added.
Sources Used
- Charles Schwab Pressroom — company statement
- The Block — The Block
End of article · 2026-04-16