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Scott Melker discusses Charles Schwab’s (SCHW) addition of Solana (SOL-USD), Avalanche (AVAX-USD) and Chainlink (LINK-USD) to its spot trading platform, expanding the crypto assets available to investors.
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Charles Schwab adds Solana, Avalanche, Chainlink to crypto platform. This is native Solana, Avalanche and Chainlink, not ETF or some kind of wrapped institutional exposure.
This joins the announcement that we had before that they were offering <a href="https://xpertsstudio.com/bitcoin-slips-below-80000-after-kevin-warsh-inflation-vow/” title=”Bitcoin Slips Below $80,000 After Kevin Warsh Inflation Vow”>Bitcoin and Ethereum spot trading. Now, to be clear, you cannot transfer these assets on and off, but you can buy and hold the spot assets on Charles Schwab’s platform.
Chucky. Chuck Schwab.
This is going to happen in the coming months, and once again, uh the fees here will be 75 basis points like they are with Bitcoin and Ethereum.
So just to like put in perspective how big this is, right? It doesn’t mean that all these people are going to buy these three very random assets that they’ve added.
But Schwab oversees more than 12 trillion dollars in client assets with approximately 39 million active brokerage accounts.
So, joining Bitcoin and Ethereum is not the big story for Solana, Avalanche and Chainlink here. The big story is that it sits alongside customers stocks, bonds, ETFs, and cash.
This makes a crypto allocation far easier for investors who in the past would have had to go open an OKX or a Coinbase account to get exposure.
So people are asking why these three. I mean, Solana obviously is the clearest large cap next to Ethereum.
They said that Chainlink is an infrastructure connecting blockchains with prices, financial data and tokenized assets. Avalanche is a bet on institutional networks and customizable blockchain infrastructure.
Schwab’s a take effectively taking three established infrastructure plays rather than offering hundreds of speculative tokens.
Eventually, this is going to be everything. I would imagine.
Obviously not the case yet, but it is a slow rollout that we’re seeing from multiple platforms, right?
We obviously reported on the fact that Morgan Stanley gain spot exosure exposure to crypto assets as well
So, as I’ve told you before, we have the traditional brokerages and institutions on one side, the crypto natives on the other side, and they’re all converging to offer everything to everyone.
And it’s going to be a very interesting battle to see who wins. Now, to me,
this isn’t really Charles Schwab trying to gain new customers. This is Charles Schwab trying not to lose customers who want exposure to these assets to other platforms.
If you leave Charles Schwab as a customer or take 20% of your assets and go to OKX and buy Bitcoin, that money never comes back, right?
Even if you go buy Bitcoin right now, you can’t send that Bitcoin back to Charles Schwab.
So to me, this is protection. They’re making sure that they offer the biggest, most popular assets in their view and that the customers who want it can at least gain some exposure there without seeing capital flight.
I think it’s a really, really interesting time right now in the industry and we’re going to uh see only more of this moving into the future.
Source: finance.yahoo.com