Large brokerage firm Schwab plans to offer spot cryptocurrency trading

New CEO Rick Wurster said the company was preparing for such “what-ifs.”

In a clear sign that cryptocurrency investing is becoming more mainstream, this week one of the largest U.S. brokerage firms Charles Schwab (NYSE:SCHW) will likely offer spot cryptocurrency trading in the new regulatory environment.

The company has made no formal announcement, but incoming CEO Rick Wurster confirmed in an interview with Bloomberg TV on Thursday that the company is moving in that direction.

“I think we will enter the cryptocurrency market as the regulatory environment changes, and we expect that to change. And we are prepared for that situation,” says Wurster, the company’s current president. the CEO told Bloomberg on January 1.

Missed the boat?

Schwab currently offers cryptocurrency investments on its platform through exchange-traded funds (ETFs), Bitcoin futures, closed-end funds, and is even exploring investments in Bitcoin and Ethereum through ETFs. However, other than ETFs, it does not offer spot cryptocurrency investment, which allows investors to directly invest in various cryptocurrencies.

This change allows Schwab to better compete with new brokerages like Robinhood that allow spot cryptocurrency investing.

“It’s an interesting asset class and people are really drawn to it,” Wurster told Bloomberg, which interviewed him Thursday at the Schwab Impact Conference in San Francisco.

“We never like to judge what people want to invest in,” Wurster added. “I think the people on our platform are very thoughtful investors. Very sharp. They are making decisions about what they want to invest in and cryptocurrencies have certainly caught the attention of many. And they made a lot of money doing it.”

Wurster himself has not invested in cryptocurrencies and said he “feels stupid right now” considering prices are rising.

By that point, the price of Bitcoin had surpassed $99,000 on Friday and was up 124% year-to-date.

“We encourage investors to invest in what matters to them,” Wurster said. “I’ve talked to a lot of investors who say I’ve completely missed the boat. They told me all the good things about cryptocurrency, and you see, they were right, not me.”

A “destructive” force?

Investors should expect to hear more from Wurster in the coming weeks and months, as he replaces outgoing CEO Walt Bettinger on January 1st.

But in some ways, Schwab has been waiting for the regulatory environment to change for some time. Bettinger addressed this topic three years ago during its Q1 2021 earnings call with analysts.

“We want greater regulatory clarity,” Bettinger said on its 2021 earnings call. distance It has been reported. “And if that happens, you should expect Schwab to be a participant in that space in the same way it has been a participant in other investment opportunities across the spectrum.”

That time has come, as President-elect Donald Trump has been a champion of cryptocurrencies, and current SEC Chairman Gary Gensler, who was not considered a cryptocurrency advocate in the industry, announced this week that he will resign on January 20th.

“If Charles Schwab as a company decides to participate in the cryptocurrency market, we will be highly competitive, disruptive and customer-oriented,” Bettinger said in April 2021.

Stay tuned.