Investment Giant Schwab Steering Clear of Crypto ‘For Now’: Sources
Marie Huillet's original article for cointelegraph.com reduced by 70%
United States-based investment giant Charles Schwab is - for now - steering clear of cryptocurrencies, even as rivals such as Fidelity rush to embrace the new sector. Schwab - the U.S.' largest investment brokerage firm, with $3.2 trillion in assets under management - will not seek to offer direct trading of cryptocurrencies for the foreseeable future, according to a Sept. 7 report from RIABiz.
Earlier this year, when asked whether the firm would seek to join the governance consortium for Facebook's forthcoming Libra stablecoin, Schwab president Walt Bettinger had also played for time, stating, "Let's answer that question out in the future a little bit." Other analysts such as Will Trout, from Boston-based consultancy Celent - anticipate 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." "The overall market size of cryptocurrencies, at this point, is still not big enough for firms like Schwab  to justify the risks they will be taking  It could be worth it for these firms to wait." Schwab's 8,000 registered investment advisors custody $1.7 trillion in assets through Schwab Advisor Services - roughly equal to Pershing, TD Ameritrade and Fidelity combined, as RIABiz notes. Schwab Chief Strategist remarked back in 2017 that Bitcoin is "Kind of its own thing" and thus hard to predict due to its independence and non-correlation with the wider, traditional market.
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CN [too long; didn’t read]
Summarised crypto news.