Overview
- Schwab, which announced the first cohort Tuesday on X, opened Schwab Crypto to selected U.S. clients to buy and sell Bitcoin and Ethereum inside its web and mobile platforms.
- Trades carry a 0.75% fee and run through a separate Schwab Crypto account, with Charles Schwab Premier Bank holding custody and Paxos handling trade execution and sub-custody.
- Access is limited at this stage and excludes New York, Louisiana, and U.S. territories, with international clients not yet eligible and approvals based on residence and account checks.
- The launch sharpens a pricing contest among big brokerages as Morgan Stanley’s E*TRADE pilot charges 0.50% and Fidelity’s direct crypto service lists a 1.00% rate.
- The rollout coincided with $233 million in net outflows from U.S. spot bitcoin ETFs on May 12, a timing that has prompted questions about retail money shifting between ETFs and direct holdings.