Charles Schwab to Launch Spot Bitcoin & Ethereum Trading in 2025 Amid Regulatory Shifts

Why Is Charles Schwab Entering Crypto Now?

During a November 2024 announcement that flew under many radars, Schwab exec Peter Wurster revealed the firm's crypto ambitions would hinge on clearer U.S. regulations. Fast forward to July 2025: "We're optimistic about the regulatory landscape evolving favorably," Wurster told analysts last Tuesday. "Our target is launching direct spot crypto trading within 12 months—we've got the infrastructure cooking." What's fascinating isn't just the timing (with bitcoin up 25% QoQ despite recent dips), but Schwab's parallel stablecoin development. They're exploring partnerships, in-house builds, or leveraging existing blockchains—a classic "cover all bases" Wall Street maneuver.

The Stablecoin Gambit

"Stablecoins will likely become the railroad tracks for blockchain transactions," Wurster mused, dropping the bombshell that Schwab will "have a stablecoin eventually." This comes hot on the heels of the GENIUS Act passing the House, which aims to bring order to the stablecoin wild west. Industry watchers at BTCC note this dual play—spot trading plus stablecoin—mirrors strategies by Standard Chartered, which just launched institutional BTC/ETH spot trading this week.

Market Context: Volumes Down, Prices Up

TokenInsight data shows a curious dichotomy: while spot volumes across major CEXs (including BTCC) fell 22% to $4.6T in Q2 2025 versus prior quarter, Bitcoin rallied 25% on ETF inflows. ethereum saw fireworks too—BlackRock's ETH spot ETF recorded $499M in daily inflows last Wednesday. "It's the institutionalization paradox," observes a BTCC market strategist. "Retail traders pull back while whales accumulate." Schwab's move seems timed to catch this institutional wave, though skeptics note crypto still only represents 3% of Schwab's $10.76T assets under management.

Trump Tariff Tailwinds

In a plot twist, Schwab's crypto push coincides with bumper earnings—up 60% YoY thanks to tariff-related trading surges. The firm posted $2.13B net income last quarter, with client assets growing 14%. Some analysts whisper this cash cow might fund aggressive crypto customer acquisition. "When Schwab moves, the industry follows," notes a Bloomberg analyst, referencing their disruptive $0 commission stock trades in 2019.

Regulatory Tightrope

The elephant in the room remains Washington. With the SEC still wrestling with crypto classification and the GENIUS Act not yet law, Schwab's timeline feels ambitious. But as Wurster quipped: "We didn't build this firm by waiting for perfect conditions." The firm's cautious language—"subject to regulatory approval"—reveals the delicate dance between innovation and compliance.

What This Means for Investors

For retail traders, Schwab's entry could mean simpler tax reporting and integrated portfolios. Institutions get a trusted counterparty—Schwab's 14.1M active brokerage accounts dwarf Coinbase's 3M. But the real story might be the stablecoin: if Schwab can tokenize money market funds? Game over for Tether's dominance. One thing's certain—2025 just got more interesting for crypto markets.

FAQs

When will Charles Schwab launch crypto trading?

Targeting spring 2025, pending regulatory approvals.

Which cryptocurrencies will Schwab support initially?

Bitcoin and Ethereum spot trading confirmed, with others likely to follow.

How does Schwab's stablecoin plan differ from competitors?

Details remain scarce, but expect integration with traditional financial products.

Why is Schwab entering crypto during a volume downturn?

They're betting on long-term institutional adoption over short-term retail trends.

Will Schwab's crypto services be available internationally?

Initial rollout appears U.S.-focused, mirroring their brokerage model.