Schwab Crypto Opens to All Retail Clients: Assets Bypass SIPC via Paxos Sub-Custody
Charles Schwab completed the retail rollout of its Schwab Crypto™ platform, offering Bitcoin and Ether trading to all eligible U.S. clients. The firm manages $13.33 trillion in assets and took an equity stake in Paxos, which handles sub-custody. Crypto assets are not protected by SIPC or FDIC. Schwab charges 0.75% per trade, with plans to add Solana, Avalanche, and Chainlink by year-end 2026.
How this was made
The 30-second read
Why it matters
The launch expands retail crypto participation and may pressure competitors to accelerate their own offerings.
Market read
Significant for brokerage‑crypto integration, potential fee revenue boost, and competitive dynamics.
What to watch
The sub‑custody arrangement with Paxos leaves crypto assets outside SIPC protection, a risk for investors.
Background
Schwab, the largest U.S. brokerage by assets, adds Bitcoin and Ether trading to its platform, using Paxos as a sub‑custodian.
Ticker impact
Schwab announced full retail rollout of its Schwab Crypto platform, enabling Bitcoin and Ether trading for all U.S. brokerage clients.
likely modest upside as traders allocate to Schwab for crypto exposure
New product launch creates incremental fee income and attracts crypto‑interested investors.
Bitcoin is now tradable on Schwab Crypto, expanding access for retail brokerage clients.
likely slight upward pressure as new retail flow adds buying interest
Increased distribution channel for Bitcoin through a major broker.
Ether is now tradable on Schwab Crypto, adding another major digital asset to the platform.
potential modest upside from new retail inflows
Schwab’s large client base provides new demand source for Ether.
Market effects
Brokerage and fintech sectors see heightened competition as more firms add crypto offerings.
U.S. retail investors gain direct crypto access, potentially shifting some volume from pure exchanges.
Sets a precedent for large brokerages worldwide to integrate spot crypto.
Counterpoint
Retail crypto exposure via a broker may attract regulatory scrutiny and could limit growth.
Key entities
- companyCharles Schwab
U.S. brokerage launching crypto platform.
- companyPaxos Trust Company
Sub‑custodian handling crypto assets for Schwab.
