Financial Services
Schwab delivered robust Q2 FY2026 earnings, with net income up 32% on record client assets of $13.1 trillion, fueled by lending growth and the launch of spot crypto trading.
Key risk: Sub-Custodian Operational and Security Failures
Any operational failure, cybersecurity incident, fraud, or disruption at the sub-custodian could result in theft or loss of clients' cryptocurrency, which may not be recoverable, exposing Schwab to remediation costs, regulatory scrutiny, and reputational damage.
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