The market now appears to be entering the second phase of its DeFi expansion.
In the early stage, stablecoins served as the core bridge between TradFi and DeFi, providing liquidity while replicating familiar banking functions, but with faster settlement, real-time transfers, and 24/7 accessibility.
SoFi Bank emerged as an early proof of concept, integrating Bitcoin [BTC] and other crypto products into a broader financial ecosystem. The platform enabled multiple use cases such as lending, borrowing, and investing, alongside high-yield savings of up to 4.5% APY through its “SoFi Big Business Banking” rollout. However, this now looks like just phase one.
Notably, the next wave appears to be forming with Charles Schwab. For context, Charles Schwab manages nearly $12 trillion in client assets and plans to launch Spot Bitcoin and Ethereum [ETH] trading this quarter, while already offering early access through its “Schwab Crypto” waitlist.
The market reaction was immediate, with many viewing the move as a key milestone in integrating crypto into traditional brokerage platforms. In simple terms, brokerage platforms will now integrate crypto directly into the same investment ecosystem investors use for stocks, ETFs, and long-term portfolio management.
Naturally, the impact on Bitcoin and Ethereum could be substantial, especially considering Charles Schwab manages nearly $12 trillion in client assets. This raises a broader question – With SoFi Bank and Charles Schwab stepping into crypto, is “FOMO” now acting as the real bridge between TradFi and DeFi, signaling the second phase of DeFi expansion?
Stablecoins paved the way for Schwab’s Bitcoin and Ethereum push
The timing of Charles Schwab’s Bitcoin and Ethereum move couldn’t be better.
On the macro side, the CLARITY Act hasn’t passed yet. That leaves the stablecoin yield debate unresolved and keeps broader crypto adoption on hold. The logic is straightforward – Stablecoins are the engine that powers DeFi. If yields are capped, the incentive for capital to flow on-chain weakens, slowing participation.
In this environment, Charles Schwab’s Bitcoin and Ethereum launch boosts confidence across the TradFi ecosystem. The move sparks FOMO and drives renewed institutional activity. Strong stablecoin market capitalization only amplifies the momentum, setting the stage for the next phase of DeFi expansion.
Even with the debate ongoing, stablecoin capitalization keeps breaking into price discovery. In fact, DeFiLlama revealed that the total stablecoin market cap was up 3.3% year-to-date, with over $1 billion flowing in just this week. At a base level, stablecoins continue to power liquidity, supporting trading while driving broader crypto adoption.
Now, building on this momentum are TradFi platforms like SoFi Bank and Charles Schwab, opening Bitcoin and Ethereum trading. By bringing crypto onto mainstream brokerage platforms, they reinforce confidence, spark FOMO, and accelerate capital flow into DeFi, setting up the next growth phase.
In this context, Charles Schwab’s move marks a turning point for TradFi’s exposure to Bitcoin and Ethereum.
Final Summary
- Stablecoins laid the foundation for DeFi, while Charles Schwab bringing Bitcoin and Ethereum to mainstream platforms will drive institutional FOMO.
- Charles Schwab’s $12 trillion footprint marks a turning point, signaling the second phase of DeFi expansion.
