$12 Trillion Giant Enters the Game! Charles Schwab to Launch Spot Bitcoin and Ethereum Trading in 2026—Is This the Biggest Threat Yet to US CEXs?

US Traditional Financial Giant Charles Schwab, Which Manages Over $12 Trillion in Client Assets, Plans to Launch Spot Bitcoin and Ethereum Trading Services in 2026. This move marks a shift in mainstream brokerages’ attitude toward cryptocurrencies from offering indirect exposure via ETFs to enabling direct trading on their core platforms, aiming to keep tens of millions of existing clients within their ecosystem. Analysts note that Schwab, with its zero-commission stock trading model, diversified revenue structure, and deep institutional credibility, could pose a structural challenge to US-based crypto exchanges like Coinbase, which rely heavily on transaction fees—a fierce competition over price, trust, and market share is about to unfold.

$12 Trillion Giant Pivots: A New Milestone for Traditional Finance Entering Crypto

Following asset management giants like BlackRock and Fidelity making aggressive moves into the crypto market through spot ETFs, another cornerstone of the US financial industry—full-service brokerages—has taken a crucial step. Charles Schwab recently announced its plan to offer spot Bitcoin and Ethereum trading services for its platform clients in 2026. The company has begun internal testing and plans to conduct limited pilot programs before a full rollout. The symbolic and substantive impact of this decision is significant.

Charles Schwab manages over $12 trillion in client assets and has tens of millions of individual investor accounts. Historically, clients wanting to trade cryptocurrencies had to move funds out to dedicated crypto exchanges like Coinbase or Kraken. Schwab’s entry aims to end this “fragmentation,” integrating crypto with stocks, bonds, and retirement accounts on a trusted platform. This dramatically lowers both the operational and psychological barriers for mainstream investors to access crypto assets and powerfully endorses the trend of “crypto being integrated into existing financial infrastructure.”

This move is not an isolated case. Just last week, another financial giant, Vanguard, also announced its expansion plans in the crypto space. The consecutive entry of traditional financial titans clearly indicates that crypto assets are accelerating their transition from a niche, speculative product requiring “separate account opening” to a regular component of large financial institutions’ standard product matrix. For the entire industry, this signals imminent exponential expansion of the user base.

The Arrival of the “Zero Commission” Model: A Dimensional Hit to Exchanges’ Core Revenues

Schwab’s entry brings an unprecedented structural challenge to US-based crypto exchanges: a price war. Schwab is famous for its zero-commission trading model for stocks and ETFs. If it extends this low- or zero-fee strategy to spot crypto trading, it will directly impact the core revenue streams of exchanges like Coinbase and Kraken.

Currently, mainstream crypto exchanges heavily rely on transaction fees. For example, Coinbase’s retail trading fees typically exceed 1%, and even its advanced platform for professional traders charges up to about 0.60%. Schwab is fully capable of pricing crypto trading fees far below these levels because it has diversified revenue streams that crypto exchanges lack. Its profits come from various sources, including interest on idle account funds, investment advisory fees, payment for order flow (PFOF), and more. Crypto trading can simply serve as a “traffic generator” to attract and retain clients, rather than being the sole profit center.

This business model asymmetry gives traditional brokerages a natural advantage in price competition. Additionally, investors can already trade spot Bitcoin ETFs on Schwab’s platform commission-free, with typical ETF bid-ask spreads being very low, just 1-2 basis points (0.01%-0.02%). To convince clients to switch to its spot trading service, Schwab must offer highly competitive all-in costs, which will inevitably force aggressive pricing strategies and put pressure on the entire crypto trading industry.

Key Competitive Dimensions Analysis of Schwab’s Entry

Asset Scale Comparison: Schwab manages over $12 trillion in assets, while typical crypto exchanges have custodial assets ranging from tens to hundreds of billions of dollars.

Business Model Differences: Schwab’s revenues are diversified (interest, advisory services, order flow, etc.), while crypto exchanges rely heavily on transaction fees.

Pricing Power: Schwab can offer extremely low or zero commissions, treating crypto trading as an ecosystem add-on; exchange retail fees are often higher than 1%, with limited room for reduction.

Regulation and Trust: Schwab has long been regulated by the SEC, FINRA, FDIC, and enjoys high institutional credibility; crypto exchanges are subject to emerging regulatory frameworks, with lingering doubts among some users.

User Scenarios: Schwab has tens of millions of existing investment clients, enabling seamless integration of crypto and traditional assets; crypto exchange users still need separate accounts to manage assets.

Compliance and Trust: The Traditional Giants’ “Invisible Moat”

Beyond price advantages, traditional finance giants like Schwab possess an “invisible moat” that crypto-native exchanges cannot easily cross in the short term: decades of established regulatory compliance frameworks and institutional-level trust. For millions of cautious retail investors—especially older or high-net-worth client segments—trading on a platform like Schwab, long regulated by the SEC and FINRA, with client cash accounts insured by the FDIC, offers a sense of security and trust that far exceeds that of a standalone crypto exchange still grappling with regulatory uncertainty.

This “trust premium” is especially evident in asset security. Schwab’s client assets are held within its mature, audited institutional framework. While crypto exchanges’ custodial services are also improving, past incidents of exchange hacks and bankruptcies (such as FTX) continue to cast a shadow for many traditional investors. As the functionality of both services converges (both can trade Bitcoin), security, compliance, and brand reputation become decisive factors.

This trend is ushering the US crypto market into a new era: the focus of competition is shifting from “speed of new product launches” and “variety of coins” to “trust, cost, and user experience.” For exchanges that have already built strong brands and embraced compliance (such as Coinbase), this presents both challenges and opportunities; for many smaller, niche-focused platforms, their survival space may be further squeezed.

The New Phase of Market Competition: Integration, Squeeze, and Future Landscape

Schwab’s entry signals a fundamental shift in the competitive landscape of the US crypto market. Traditional finance is no longer a bystander or an “investor” participating indirectly via ETFs, but is joining as a direct service provider. This will reshape the market along three dimensions: product integration, price compression, and regulatory convergence.

First, there is deep integration of financial services. Schwab’s goal is to become a “one-stop center” for all aspects of clients’ financial lives. Seamlessly embedding crypto trading within its existing stocks, funds, and retirement planning ecosystem provides a level of convenience unmatched by any single-function crypto exchange. This will accelerate the shift from “crypto-only users” to “comprehensive investors who use crypto features.”

Second, ongoing price compression will force crypto exchanges to transform their businesses. They may be driven in two directions: one, to go deeper into crypto-native ecosystems, offering more complex derivatives, DeFi integration, new asset issuance, and other services Schwab is unlikely to provide in the short term; two, to diversify revenues by developing custody, staking, lending, and other asset management services, reducing reliance on trading fees.

Finally, deep participation by traditional giants will accelerate industry-wide regulatory standardization. Their operations will be fully within existing financial regulatory frameworks, effectively setting a compliance benchmark that forces all market participants toward stricter, more transparent standards. In the long term, this will help build a healthier, more sustainable market environment, though short-term pains are inevitable.

The Map of US Traditional Financial Giants’ Crypto Layout and Crypto Exchanges’ Response Strategies

Overview of Major US Traditional Financial Institutions’ Crypto Ventures

Asset Management Firms: BlackRock has launched a spot Bitcoin ETF (IBIT) and, through its Aladdin platform, provides crypto asset risk management tools for institutions. Fidelity has also issued a spot Bitcoin ETF (FBTC) and, as early as 2018, launched crypto custody services for institutions, later expanding to retail trading.

Full-Service Brokerages: Charles Schwab plans to launch spot Bitcoin and Ethereum trading in 2026. Vanguard recently announced its crypto expansion plans. Interactive Brokers has long provided crypto trading services to select clients.

Investment Banks: JPMorgan Chase has launched JPM Coin for institutional settlement and is actively involved in blockchain technology development. Goldman Sachs offers crypto derivatives trading and custody services for institutional clients.

Potential Strategies for Crypto Exchanges

Deepen in Vertical Niches: Focus on long-tail crypto assets, DeFi protocol interaction, NFT marketplaces, and other areas giants like Schwab won’t cover immediately, maintaining an innovation edge.

Strengthen Global Advantage: US-based exchanges have a first-mover advantage and a more complete product line in global markets and can continue to consolidate their leading positions outside the US.

Transform into “Crypto Banks”: Aggressively develop compliant custody, staking, yield, lending, and other asset management services, shifting from “trading venues” to “crypto asset service providers” for a more stable income structure.

Embrace Compliance, Build Trust: Accelerate comprehensive compliance registration (such as becoming SEC-registered broker-dealers), improve transparency and audit standards, and strive to match traditional institutions in trustworthiness.

Seek Cooperation, Not Pure Confrontation: Explore partnerships with traditional financial institutions, such as providing technical solutions or liquidity support, to achieve symbiosis.

When a $12 trillion financial giant turns its helm and sails into the crypto market, the waves it stirs will reshape the entire shoreline. Schwab’s decision is far more than just adding two trading pairs—it marks the next chapter in the mainstream adoption narrative for crypto: shifting from “how to attract traditional capital” to “how traditional capital will take the lead.” For the Coinbases of the world, this competition is no longer a simple sprint between similar players, but a full-scale stress test of business models, trust-building, and ecosystem integration. The future winner may not be the exchange with the most altcoins, but the service provider that can best combine the volatility of crypto assets with the stability and convenience of global mainstream finance. This fusion and collision will ultimately bring global investors a more mature—and also more brutal—new era.