Charles Schwab announced the launch of Schwab Crypto, a spot cryptocurrency trading service that will begin rolling out to retail clients in the coming weeks. The service will initially offer direct trading in bitcoin and ethereum.

The platform will charge 75 basis points on the dollar value of each trade and provide access through Schwab.com, Schwab Mobile, and the thinkorswim trading platform. Clients will maintain separate crypto accounts through Charles Schwab Premier Bank, which will serve as custodian of digital assets.

Paxos, an OCC-regulated blockchain infrastructure provider, will handle sub-custody and trade execution services for the platform. The service will include educational content from the Schwab Center for Financial Research and 24/7 customer support.

"We know our clients want to conduct more of their financial lives at Schwab," said Jonathan Craig, Head of Retail Investing at Charles Schwab. "With Schwab Crypto, clients who want direct access to the asset class can trade it alongside their other investments."

The company plans to add additional cryptocurrencies and transfer capabilities for deposits and withdrawals over time. Schwab Crypto accounts will be available in all U.S. states except New York and Louisiana, and will not be offered in U.S. territories or international jurisdictions.

A Schwab survey of nearly 500 cryptocurrency investors identified low transparent pricing, brand familiarity, and asset security as key factors when choosing a cryptocurrency trading firm. Schwab clients currently hold approximately 20% of spot crypto exchange-traded products, according to the company.

The cryptocurrency accounts are offered by Charles Schwab Premier Bank and are not FDIC insured or SIPC protected. The company noted that cryptocurrencies involve risk including total loss of principal and are highly volatile.