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The US Bitcoin and crypto market have been on uncharted waters recently, and many are excited and optimistic. Charles Schwab, a leading financial company with $7 trillion in assets, is one of the recent companies taking an interest in this “hot industry.”
According to Rick Wurster, Charles Schwab’s president, the company plans to enter the spot cryptocurrency market once the industry regulations become friendlier.
Charles Schwab’s interest came after incoming US President Donald Trump’s convincing win in the US elections. In a Yahoo Finance interview last November 21st, Wursters mentioned that it aims to offer these digital assets directly to its customers as soon as the regulations become more evident.
A Brilliant Strategy Or A Silly Move?
The digital currency industry’s highly volatile nature and SEC Chairman Gary Gensler’s aggressive regulation have affected plenty of market players. Binance and Ripple Labs are just two top crypto companies that have caught the agency’s attention, resulting in costly and long-drawn legal battles. So, some analysts may say that Schwab is probably making a pointless move during uncertainty.
But Wurster, in another Bloomberg Radio interview, clarified that they will only make the move pending favorable rules and regulations. Wurster stated that they’ll enter when the regulatory environment changes and expect it to happen, so they’re ready for that scenario. The company already offers crypto-linked futures and ETFs and plans to expand into direct trading.
Charles Schwab’s incoming CEO Rick Wurster said today on Bloomberg radio
“I have not bought crypto, and now I feel silly”
— Evan (@StockMKTNewz) November 21, 2024
Wurster also acknowledged that he felt silly about not having bought any digital assets yet. In the interview, he stated, that “crypto has definitely caught many people’s attention, and they’ve made a lot of money doing it.” He added that: “I have not bought crypto, and now I feel silly.”
Schwab Prepares A Shift In Business Model
As a leading financial company, Charles Schwab manages over $7 trillion of assets and offers various investment services. In recent months, the company reported an inflow of new customers, and around 60% of its new customers are under 40.
As such, Schwab is preparing for the changes by investing in digital assets, including Bitcoin futures and crypto ETFs.
More Companies Are Moving Into Crypto
With a market cap of over $147 billion, Charles Schwab is a trusted banking and investment services provider. The company aims to expand its portfolio by keeping an interest in crypto even in these changing times.
Aside from Charles Schwab, other US and international companies are entering the digital industry. Trump’s win and the prospects for friendly crypto regulations influence the interest in this growing industry. Schwab’s CEO, Walter Betingger II, is turning 65 next year and will retire.
Wurster is expected to serve as the company’s incoming CEO and potentially steer the company’s entry into crypto.
Featured image from Forbes, chart from TradingView
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