Charles Schwab Corporation plans to offer spot cryptocurrency trading once regulations become clearer under the Trump administration, incoming CEO Rick Wurster announced Thursday, according to a report by Paige Smith for Bloomberg. “We will get into spot crypto when the regulatory environment changes, and we do anticipate that it will change, and we’re getting ready for that eventuality,” he said in a Bloomberg Radio interview.
Competition for retail investors has grown stronger since the pandemic and accelerated after the presidential election. The surge in market activity has pushed both established firms and newcomers to expand their services. While Schwab competes with traditional rivals Fidelity Investments and Interactive Brokers, it also faces challenges from digital platforms Robinhood Markets and Webull.
Currently, Schwab offers crypto ETFs and crypto futures trading. During the interview, Wurster spoke openly about cryptocurrency, admitting he regrets not investing personally while supporting clients who want to invest in digital assets.
The announcement comes as Schwab prepares for new leadership. Current CEO Walt Bettinger, who has led the company since 2008, will step down as he turns 65 next year. Wurster, who joined Schwab in 2016 and became president in 2021, will take over.
During the interview, Wurster also highlighted their use of artificial intelligence in customer service. He noted that tasks that once took staff members more than three minutes now take seconds, improving how the company handles 60,000 monthly information requests.
Charles Schwab has steadily expanded its involvement in cryptocurrency services to align with the growing importance of digital assets in the financial world. In August 2022, the company launched the Schwab Crypto Thematic ETF, which allows investors to gain exposure to businesses that benefit from the development and application of blockchain technology and cryptocurrencies. This ETF does not involve direct investment in cryptocurrencies but instead focuses on companies operating within the crypto ecosystem.
Additionally, Schwab provides access to a variety of third-party ETFs and mutual funds that include investments in cryptocurrencies, cryptocurrency futures contracts, or equities tied to the cryptocurrency industry. These products are categorized under “Digital Assets” on Schwab’s platform, making it easier for clients to explore options using its Fund Finder tool. For those seeking more advanced options, Schwab also facilitates cryptocurrency futures trading for clients with eligible accounts. These futures contracts are cash-settled, meaning they do not require the physical handling of digital assets.
Charles Schwab has also supported the broader cryptocurrency market through its involvement in EDX Markets, a cryptocurrency exchange that launched in June 2023 with backing from Schwab, Fidelity, and Citadel Securities. The exchange supports trading in cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Operating as a non-custodial platform, EDX ensures that customer assets are safeguarded by third-party custodians rather than being directly held by the exchange.
Featured Image via Pixabay