Charles Schwab’s $12 Trillion Crypto Bomb: The Biggest Threat Yet to U.S. Exchanges in 2026

Charles Schwab is preparing to launch direct cryptocurrency trading on its flagship brokerage platform in the first half of 2026, giving its 35+ million accounts and $12.1 trillion in client assets seamless access to spot Bitcoin, Ethereum, and potentially a curated basket of additional digital assets.

The move, confirmed through job postings, vendor RFPs, and regulatory filings in late November 2025, would make Schwab by far the largest traditional financial institution to offer actual crypto custody and trading — not just ETFs — instantly transforming the competitive landscape for native U.S. exchanges.

Why This Is Different From Every Other Brokerage Move

• Scale: $12.1 trillion AUM is larger than the combined market cap of every publicly traded U.S. crypto company.
• Pricing Power: Schwab already offers commission-free stock and ETF trading. Industry sources expect crypto trades to be $0 or a nominal flat fee (≤$1 per trade), crushing the 0.60% taker fees still common on many U.S. exchanges.
• Custody + Convenience: Unlike Vanguard or Fidelity, which currently limit clients to ETFs, Schwab plans qualified custody of actual coins with the same login investors already use for their IRA, 401(k), and taxable accounts.
• Regulatory Moat: Schwab’s decades-long relationship with the SEC, FINRA, and OCC gives it unmatched credibility. The firm is reportedly structuring the offering through its existing RIA and trust company charters, sidestepping many of the novel regulatory hurdles that have slowed pure-play crypto platforms.

The ETF Precedent Should Terrify Exchanges

Schwab already drove spot Bitcoin ETF trading fees to zero in 2025 (IBIT, FBTC, ARKB all trade commission-free on its platform). The same playbook is now coming for the underlying assets.

Early estimates from Bernstein and JPMorgan suggest that if Schwab captures even 5–8% of its client base allocating 1% to crypto, that’s $600–$960 billion in potential inflows — dwarfing the entire current U.S. retail exchange ecosystem.

Bottom Line

When the largest discount broker on Earth, famous for democratizing access and crushing fees, decides to enter a market, incumbents don’t just lose share — they get obliterated.

Crypto exchanges spent years building regulatory compliance and brand trust. In 2026, Charles Schwab will offer the same (or better) compliance, dramatically lower fees, and one-stop-shop convenience to a client base 50–100× larger.

The countdown for native U.S. crypto exchanges to reinvent themselves — or face existential margin compression — has officially begun.