Charles Schwab introduced Schwab Crypto with a flat fee of 75 basis points per transaction, enabling clients to buy and sell Bitcoin and Ethereum directly through existing brokerage accounts. This move brings a legacy financial firm into direct competition with Robinhood’s crypto offering, pressuring pricing and convenience advantages held by crypto-native platforms.

Robinhood shares slid 3% on the day of Schwab’s launch, adding to a broader 30% decline over the past five months. The drop follows a Q4 earnings miss driven by a 38% year-over-year decline in crypto revenue and a 38% surge in operating expenses, which cut the forward P/E multiple from 60x to 41x.

Despite recent headwinds, Robinhood’s trailing twelve-month revenue grew 51.6% with a 46.9% operating margin. The platform saw Gold subscription uptake rise 58% and net customer deposits reach a record $68 billion, underscoring progress toward a more durable, high-ARPU financial services model.