Financial Giant Charles Schwab Eyes Direct Crypto Trading in Major Strategy Shift

Charles Schwab, one of America’s largest financial services firms, is preparing to offer direct cryptocurrency trading to its clients once regulatory conditions improve, according to incoming CEO Rick Wurster.

The announcement signals a significant shift for the traditional investment giant as it adapts to growing demand for digital assets.

New Leadership, New Direction

“We’d like to directly offer crypto,” Wurster said in a November 21 interview. “We’ve been waiting for a change in the regulatory environment in order to do that, and we’re confident that we think that will come in short order.”

Wurster, who will take the helm as CEO on January 1, 2024, made headlines by acknowledging his personal regret about not investing in cryptocurrency earlier. “I have not bought crypto, and now I feel silly,” he admitted, while emphasizing that despite his personal investment choices, the firm wants to support clients interested in the asset class.

The company currently offers crypto exposure through various investment vehicles, including ETFs and futures, which Wurster noted have performed well for clients. In October, a Charles Schwab survey revealed that crypto had surpassed fixed-income as the second most sought-after asset class among ETF investors.

Competitive Landscape Drives Innovation

The move comes as Schwab faces increasing competition from both traditional firms like Fidelity and newer trading platforms such as Robinhood and Webull. The company has already demonstrated its commitment to the crypto space through its investment in EDX Markets, a crypto exchange launched in 2022, and its Schwab Crypto Thematic Index (STCE).

Wurster will succeed Walt Bettinger, who has led Charles Schwab since 2008. The leadership transition comes at a time of significant change in the crypto regulatory landscape, with SEC Chair Gary Gensler announcing his departure in January and the crypto market reaching new highs.

The incoming CEO also highlighted the firm’s embrace of new technologies, noting how AI has dramatically improved their customer service operations. “It used to be that 60,000 times a month, we would have a phone rep spend more than three minutes searching for a piece of information to answer a client question. Now we have built an AI capability that finds that information in seconds,” he explained.