I thought this would happen.
How long until the banks got into cryptocurrency in a major way?
According to the brokerage firm Charles Schwab, that time is, at most, a year out. The company announced its plans regarding crypto and it will completely change the landscape of the markets.
When Wall Street enters, it is only a matter of time before they go big. The takeover started with ETFs. Now, we are seeing a number of products built on top of that along with futures contracts.
That said, there is another layer which will open crypto up to the masses, at least from an investing/financial perspective.
In this article, we will take a look at what is going to take place.
Charles Schwab: 12 Months Until Takeoff For Crypto
The headline above refers to the earnings call with the CEO of Charles Schwab. In laying out the future path of the firm, he delved into the idea of digital assets.
There was strong growth in the first quarter. With future along with ETF trading available, the company has a basis which to work from.
Here is where things get interesting. With expected regulatory clarity, the major Wall Street firms are all positioning themselves for entry.
Obviously, this was done in a number of instances to varying degrees.
ETFs were a big move. However, this is nothing compared to what is coming: direct spot trading.
What is this?
According Grok, this is what it means when discussing direct spot trading?
Direct spot trading is the buying and selling of financial assets (like stocks, cryptocurrencies, or commodities) for immediate delivery and settlement, typically within a short timeframe (e.g., T+2 days for stocks). It occurs directly between buyers and sellers on an exchange or platform, with prices determined by real-time market supply and demand. Unlike derivatives or futures, it involves the actual transfer of the asset at the agreed price, with no leverage or margin unless explicitly used.
For example, in crypto, purchasing Bitcoin with USD on an exchange like Coinbase for instant ownership is direct spot trading.
It is interesting that Coinbase is mentioned. We will address that in a second. However, getting back to Charles Schwab, here is what the CEO said:
As far as direct spot crypto trading is concerned, Wurster revealed Schwab’s ambition to roll out the service by April 2026—pending regulatory greenlights, of course. A strategic chess move in the digital asset arena, timed just right.
“Our expectation is that with the changing regulatory environment, we are hopeful and likely to be able to launch direct spot crypto and our goal is to do that in the next 12 months and we’re on a great path to be able to do that,” the Schwab CEO said.
This is a huge step forward. If Charles Schwab is looking into this, most other major Wall Street firms are also. It will open up a new pathway to entry.
The End Of Coinbase?
In the United States, Coinbase is the major player. Actually, when it comes to crypto, it is really the only game in town. A lack of regulation has deterred many participants.
This is going to end. If the CEOs prediction is correct, we are looking at less than 12 months before people will have many options regarding crypto. That means the buying of Bitcoin, Ethereum, or whatever coins (tokes) are carried by the different firms.
Consider the reach and money these firms are handling. We are talking trillions of dollars. Some of this will find its way into cryptocurrency. The entry point will be platforms people are familiar with.
Coinbase might not disappear but it will face fierce competition. Naturally, there is nothing wrong with this since it will foster a wide range of options.
The Effect On Price
Many will want to know what this means for price.
While we cannot assert that definitively, there are a couple factors which could be bullish.
So far, the reception on the ETFs was fairly strong. Bitcoin took the lion's share of the money, which comes as no surprise. The Ethereum ETFs did not fare as well but still held their own.
The key will be liquidity. Spot trading with billions of dollars means larger transactions. Institutions are having to remain on the sidelines due to the fact that massive dollar moves cannot be undertaken. If the brokerage firms get into the game. volumes will increase significantly.
Some of this will stem from the firms trading bots. They will arbitrage the different coins, swapping on a continual basis.
The final piece is the potential for a lot more money to enter. DeFi is growing yet is not ideal for most. We can talk about intermediaries all we want, the masses understand and trust them (for whatever reason).
All of this could make for an extremely bullish situation. Of course, we still have regulatory hurdles in the US before any of this can come to reality. It is something to consider when the CEO of a major firm is already talking about it.
We will operate on the presumption he has some insight into what might unfold.
The deadline he set is 12 months.
Posted Using INLEO
