The trillion-dollar asset management giant Charles Schwab has made a bold statement that it will "definitely compete with Coinbase" and is also planning stablecoins and tokenization

Author: Weilin, PANews

As one of the leading financial services companies in the United States, Charles Schwab is accelerating its expansion into the cryptocurrency field. According to the latest statement by CEO Rick Wurster, Schwab will launch Bitcoin and Ethereum trading services to provide customers with more comprehensive investment options and directly compete with cryptocurrency platforms such as Coinbase.

As a traditional financial giant with more than $10 trillion in assets under management, Charles Schwab also plans to launch stablecoins and research the field of tokenization based on customer needs. As the U.S. regulatory environment gradually becomes clearer, the company is changing the market competition landscape of cryptocurrencies.

Will launch Bitcoin and Ethereum trading services, or become a direct competitor of Coinbase

Charles Schwab CEO Rick Wurster recently revealed in an interview with CNBC that Schwab is preparing to enter the field of Bitcoin trading. Such a plan may make Schwab a direct competitor of Coinbase.

“Our clients are already invested in crypto today. In fact, our clients hold over 20% of the crypto ETPs in the industry, so they do have investment.” Still, Rick Wurster noted that cryptocurrency holdings currently only account for “about $25 billion of our client assets of $10.8 trillion, so it’s still relatively small.”

He revealed that Schwab "expects to launch Bitcoin and Ethereum (trading services) soon to provide our clients with access to these assets." He also said that the service could become a major growth driver for the company.

“We’ve heard from a lot of clients that they have 98% of their wealth in Schwab accounts, maybe 1% or 2% in some digital native company to hold their crypto, and they actually want to bring those assets back to Schwab because they trust us,” Wurster said. “They want those assets to be managed with their other assets, so we think we should see real growth as we bring these products to market.”

When asked if Schwab would compete directly with Coinbase, Wurster said: “Absolutely. If they buy crypto at Coinbase, we’d love to see them bring that crypto back to Schwab.”

Manages $10 trillion in assets and has accelerated its deployment in the cryptocurrency field in recent years

Charles Schwab is an American multinational financial services company that currently provides banking, commercial banking, investment and related services, including consulting and wealth management advisory services, to retail and institutional clients. It is one of the largest banks in the United States by assets. As of December 31, 2024, the company managed $10.1 trillion in client assets, 36.5 million active brokerage accounts, 5.4 million workplace retirement plan participation accounts, and 2 million bank accounts. The company was founded in San Francisco, California and is headquartered in Westlake, Texas. It has more than 380 branches in major financial centers in the United States and the United Kingdom.

Founded in 1971 as First Commander Corporation, Charles Schwab changed its name to Charles Schwab & Co. in 1973. The company took advantage of the financial deregulation of the 1970s and pioneered the sale of discount securities. After opening a flagship store in Sacramento, California, the bank expanded to Seattle, and the U.S. economic expansion of the 1980s provided funding for the bank's investments in technology, automation, and digital record keeping. Schwab pioneered 24/7 order entry and quote services and was acquired by Bank of America in 1983 for $55 million. Three years later, the founders bought the company back for $280 million as the bank's investment funds performed well.

In recent years, Schwab has continued to pay attention to the field of cryptocurrency. In July 2022, Schwab announced the launch of its first cryptocurrency-related ETF, Schwab Crypto Thematic ETF (NYSE Arca: STCE). The fund aims to track the Schwab Crypto Thematic Index, a proprietary index launched by Schwab Asset Management, with an annual operating expense ratio of 0.30%. However, the index does not directly track or invest in cryptocurrencies, but is developed by Schwab Asset Management's research team, using human insights, artificial intelligence technology, and systematic models to identify, select, and measure companies based on their relevance to cryptocurrency themes.

The ETF is now the company’s largest crypto product, with total net assets approaching $160 million as of July 23.

Current CEO Rick Wurster also expressed support for cryptocurrencies. He said before taking office in November 2024 that Schwab plans to launch spot cryptocurrency trading services. "Cryptocurrency has indeed attracted a lot of attention, and many people have made a lot of money through it," he said in an interview with Bloomberg on November 21, 2024, adding: "I haven't bought cryptocurrency yet, and now I feel a little silly."

He added that he has no plans to invest in cryptocurrencies at this time, but hopes to support Schwab clients who are interested in doing so, noting that the company expects positive changes in the U.S. regulatory environment.

“We also hope to offer direct cryptocurrency trading… We have been waiting for the regulatory environment to change to enable this, and we believe that change will come soon,” he said in an interview with Yahoo Finance.

Plans to launch stablecoin, will study customer demand for tokenization

According to Ledger Insights, in the recent summer conference call of Charles Schwab, CEO Rick Wurster also said that the company will launch a stablecoin. However, Wurster is cautious about tokenization and believes that it is difficult for him to see what problems it can solve for the public stock market.

Wurster divides cryptocurrencies into three categories. Bitcoin is a separate category. Then there are the tokens needed for blockchain transactions, which he believes have value. The third category is the memecoin group, which Schwab does not plan to offer.

Wurster did not answer some operational questions, including whether Schwab would support staking and whether custody services would be handled in-house or through a third party. Since the Schwab Crypto Thematic ETF does not invest directly in cryptocurrencies, the product is not a useful reference. Schwab is also a shareholder in institutional cryptocurrency trading platform EDX Markets, for which Anchorage Digital provides custody services.

Wurster also did not respond to questions about the timing of the launch of spot cryptocurrency trading, but said the service will be available before the launch of stablecoins.

Regarding stablecoins, Wurster said: “We have been working with large banks and alliances to discuss how to bring stablecoins to the market. At the same time, we are also exploring our own path and we will make the decision that is best for our customers.”

Currently, Schwab's interest income on customer cash balances accounts for a significant portion of the company's revenue. For example, in the quarter ended March 31, 2025, the company's interest income reached $2.7 billion, accounting for about 50% of total revenue of $5.6 billion.

When it comes to tokenization, Wurster didn’t dismiss the concept outright, saying, “We’ll see how this trend develops and in which asset classes it becomes more mainstream. I think for the public equity markets, we have to ask ourselves, what problem does tokenization solve?”

While 24/7 trading of tokens is one of the advantages, he noted that Schwab currently offers 24/5 trading and only 1% of trading occurs outside of normal trading hours. In addition, public stock markets are very transparent, liquid and efficient, and he wonders if tokenization can provide these advantages. He also expressed concerns about anti-money laundering (AML) and malicious actors in the tokenization space.

Wurster said Schwab is exploring tokenization and will provide it if clients demand it. However, he also said that if the entire market moves in this direction, he wants to ensure that tokenization is at least as transparent, liquid and cost-effective as it is now. He also said, "For any new innovation, we hope that it will expand the field, not make us backwards."