Schwab Adds Solana, Avalanche and Chainlink to Its Crypto Platform
What Schwab Is Offering and the Key Terms Behind It
Charles Schwab has widened its digital asset offering from Bitcoin and Ether to five cryptocurrencies. Eligible retail clients can now buy and sell Solana (SOL), Avalanche (AVAX) and Chainlink (LINK) against the US dollar, following Bitcoin and Ether trading that opened to eligible clients earlier in the year. The service is available in most US states, but not in New York or Louisiana, and not in US territories or abroad.
Several terms matter here. Spot trading means buying or selling the actual cryptocurrency at its current market price, which is different from holding an exchange-traded product (ETP) that tracks crypto prices inside a regular brokerage account. Futures and options on crypto ETPs are derivatives, which add leverage and expiration risk. Custody refers to who safeguards the asset and keeps ownership records. Sub-custody means a third party holds the assets on the custodian’s behalf.
Before this launch, Schwab clients could already gain indirect exposure through ETPs, futures, options and sector funds. Direct ownership is a separate step. You hold the coins themselves, which gives more control but also means you carry the full price risk and the operational responsibility of the asset. Anyone considering a crypto investment should understand that distinction before placing a trade.
Fees, Custody and What Protections Do Not Apply
The most concrete cost is a 0.75% fee on the value of each purchase or sale, with a minimum charge of one cent. On a $1,000 purchase, the fee is $7.50. Selling the position later costs another 0.75%, so a full round trip at the same value costs roughly 1.5% before any market movement. For frequent traders, that drag can add up quickly. Compare this with a long-term holder who buys and keeps assets for years, for whom a one-time cost may matter less.
Custody is the second area that deserves close reading. Charles Schwab Premier Bank safeguards the assets and keeps ownership records, while Paxos handles sub-custody and trade execution. This layered structure is common in institutional finance, but it means your exposure depends on how each party operates.
The protection gap is the most important point for households. Crypto holdings through this service are not covered by FDIC insurance or SIPC protection. FDIC insurance applies to bank deposits if a bank fails. SIPC protects customers if a brokerage firm fails and assets go missing, but it does not protect against falling prices. Even so, traditional brokerage securities usually fall under SIPC, so the difference is real. Holders of crypto should treat their balances as uninsured in the conventional sense.
Some investors see this as a reasonable trade-off for convenience. Others prefer to keep a crypto investment separate from a brokerage they rely on for retirement savings.
Practical Steps Before You Trade Crypto at Schwab
Start with a clear purpose. Are you adding a small speculative position, or building a long-term allocation? Many financial planners suggest keeping volatile assets to a small share of a diversified portfolio. Gold investment is often discussed in the same context, since gold has historically been used as a diversifier, though it carries its own price cycles and storage considerations. Crypto assets tend to move more sharply, so position sizing matters even more.
Next, run the numbers. Calculate the fee on your intended trade, add the sell-side fee, and compare the result with your expected holding period. Also check whether you actually need the newer assets. Solana, Avalanche and Chainlink serve different purposes within blockchain networks, and their prices can diverge sharply from Bitcoin and Ether. Understanding what each project does, not just its price chart, helps you judge whether the asset fits your goals.
Funding is simple, since you move available cash from your linked brokerage account into the crypto account. Transfers of crypto into or out of Schwab are being rolled out gradually, so confirm your account has the feature enabled before planning any move.
Finally, keep records for tax purposes, review your holdings alongside your other investments, and reassess after major rule or fee changes. Schwab’s terms can change, and the best choice depends on your income, goals and risk tolerance. A licensed financial professional can help you weigh those factors.
Source: Schwab expands crypto platform to five assets with solana, avalanche and chainlink
