Charles Schwab and his $10,000 billion are coming to the cryptocurrency market. Unlike traditional institutions like Vanguard, the company wants to allow its clients to trade cryptocurrencies directly. A paradigm shift is underway.
Charles Schwab wants to eat cryptocurrencies
Charles Schwab is accelerating its development in the crypto market. At the annual Schwab IMPACT conference in San Francisco on November 21, 2024, the president of Charles Schwab announced that his company would expand its service and investment offering in cryptocurrencies.
Rick Wurster is not yet CEO of Charles Schwab, he will take office on January 1, 2025. The man did not wait to officially take office to announce his ambitions and those of his company.
Charles Schwab manages just under $10 trillion on behalf of its clients, making it one of the largest companies offering investment services in the United States. A giant with its eyes on the crypto market.
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This interest is not new. Unlike some of its competitors, Charles Schwab already offers a wide variety of tools to allow its clients to gain exposure to cryptocurrencies. As Rick Wurster says:
“ There are many ways to invest in cryptocurrencies at Schwab: ETFs, Bitcoin Futures, Closed-End funds, etc. We would also like to offer cryptocurrency directly to our customers. »
According to Rick Wurster, the crypto market is undermined by the fees of various intermediaries. Which currently makes, in the United States at least, investing in cryptos less interesting than investing in stocks.
And this is precisely the idea of the future CEO to gain a competitive advantage in the market: “ create a better offer for the average investor. »
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An idea in mind?
An element that pushes Charles Schwab in this direction is the recent victory of Donald Trump in the elections. However, Bitcoin is already available in several forms at Charles Schwab, as in the rest of the United States since the authorization of spot Bitcoin ETFs at the start of the year, and the recent arrival of options on BlackRock's IBIT .
A question therefore arises: would the company Charles Schwab intend to create a trading platform for the entire crypto market? Create a real exchange ?
The question seems all the more relevant since the company acquired a significant share of EDX Marketsa cryptocurrency exchange platform launched in 2022 by former Citadel executives.
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A strategy that seems dictated by the market given the timing. In reality, this is a deeper reflection, although the bull run and the explosion in the price of Bitcoin come at the right time to support this project. For Charles Schwab, “ 60% of new customers who come each year are under 40 years old “. However, this is the age group that is most attracted to cryptocurrencies.
A rejuvenation of investors, an exploding market, regulations that will become more flexible, these elements are pushing a giant like Charles Schwab to take a position in the crypto market. This is not the first company, and it is undoubtedly not the last: financial giants have understood that cryptocurrencies are here to stay. And they want their piece of the pie.
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Source: Bloomberg
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Cryptocurrency expert, Marc-Antoine began his journey in Web 3 alongside David Prinçay (current president of Binance France) in the French Cryptocurrency Club. Since then, it is by writing articles in the best-known crypto media in France that he has spread the good word. If you've read an article about crypto, there's a good chance you've read one of his articles. NFT, Blockchain, Web 3, DeFi, there is not a sector that is foreign to it. And don't ask him what the next coin to buy is: it's a maximalist Bitcoin (yes, no one is perfect).
Marc-Antoine Caen Poletti
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