US Investment Giant Charles Schwab Not Interested in Direct Trade of Crypto
Charles Schwab the US-based brokerage giant, which manages over $3.2 trillion in assets, are dismissing cryptocurrencies for the time being. This decision comes in spite of their competitors ‘Fidelity’ rushing to embrace this new market.
According to Rob Farmer, Schwab’s managing director for communications, the firm is not looking to offer direct trading services of cryptocurrencies “at this time." Farmer further advised, “Investors should view these currencies as a purely speculative instrument.”
The investment powerhouse’s decision to dismiss cryptocurrencies has been met with much criticism. Tim Welsh of the California based consultancy group Nexus believes Schwab’s decision is based on an unwillingness to disturb the status quo. He spoke out claiming that, “Unless Schwab’s biggest advisors demand that they do something, they will continue to sleep-walk through innovation.”
Lex Sokolin — global co-head for financial technology at blockchain software firm ConsenSys — has a far less critical view of the firm’s slow-burning strategy. He believes that ultimately, established investment giants “have the long-term advantage right now, because they can acquire for cheap.”
Image via Flickr