Charles Schwab, a Bitcoin skeptic, sees bank deposits plunge 30% YOY as BTC surges 50%
The Charles Schwab Corp. (NYSE: SCHW) is facing a decline in customer deposits due to the rising interest rate environment in the U.S., according to its Q3 2023 report. This poses a challenge for the company that relies mainly on clients’ uninvested cash to fund its interest-earning businesses.
Charles Schwab’s consumer bank deposits dropped 28% year-over-year (YOY), resulting in a 23.5% fall in its net interest revenue in the third quarter. This also affected its quarterly revenue of $4.61 billion, which was down 16.2% from Q2.
A recent tweet by the event-driven trader Gurgavin Chandhoke shows that Charles Schwab is the financial company with the largest loss in bank deposits since Q3 2022 among several banks.
The U.S. financial giant has always been skeptical about Bitcoin (BTC) and the crypto market. It does not offer these digital assets in the spot market, although it provides alternative ways to speculate on them.
The Schwab Center for Financial Research published an article in 2022 that stated that Bitcoin does not have the necessary features to be a global currency, a reliable store of value, or an inflation hedge like gold. The article considered Bitcoin as a purely speculative asset and advised investors to treat it as such. However, Bitcoin has gained 55.5% since October 21, 2022, trading at $29,804 at the time of writing. BTC YOY performance price chart (1D).