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Cryptocurrency

Charles Schwab’s CEO Dismisses Venturing into Cryptocurrency Arena

Cryptocurrencies are facing a dubious state of existence as, where on one side, the financial heads are working tirelessly to shine in the digital currency sphere, there remain few business heads who fail to show trust in the new pedagogy.

According to the statement released by Walt Bettinger, the notable CEO of the Charles Schwab Corporation, cryptocurrencies are speculative and not crucial for his RIA network. Now, this statement of the genius spearhead has created a lot of buzz in the market.

Is Charles Schwab Corporation Putting Itself At Risk?

Based on the report released by the media outlet, RIABiz, Schwab Corporation’s CEO is not ready to give his mind into exploring the crypto-custody trend flourishing in the market. This unwillingness of Bettinger to exploit crypto-sphere has made the observers opine that the firm will lag behind its rivals because of dismissal of the crypto bandwagon.

Will Trout, the senior analyst for Celent, Masscom.-based consultancy firm, remarked: “In the short to medium term, [Schwab’s] missing an opportunity.” He further added that:

Schwab will be forced to move into space at some point, although most likely in a small way, custody of client assets or a stake in an exchange.

With its competitors, namely Fidelity, TD Ameritrade, and Pershing getting involved in the virtual currency space, the Charles Schwab Corporation is adamant to not to follow the trend of launching crypto-focused trading and custody platforms.

Schwab’s managing director for corporate communications, Rob Farmer, said:

Direct trading of cryptocurrencies just isn’t on the Schwab radar at this time.

When questioned about Bettinger joining the consortium backing Libra, Facebook’s cryptocurrency venture, Rob said:

Let’s answer that question out in the future a little bit.

Interestingly, one of the prime reasons for Schwab’s unwillingness to dive into the crypto arena is the small average market capital of the digital currency world. The average market cap of crypto market amounts to $300 Billion only which, surprisingly, is equivalent to a mere 10% of Schwab’s assets under management amounting to a whopping amount of $3.2 Trillion.

It will be interesting for the crypto market to welcome the San Francisco domiciled bank and stock brokerage company, The Charles Schwab Corporation, in its dynamic space.

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Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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