Fury was fighting for the first time since his controversial draw with world champion Deontay Wilder last December.
He used all of his physical and technical advantages to control the first round and in the second, having already put the struggling Schwarz down with a straight right, forced the German’s corner to throw the towel in under another hurtful barrage.
He then set his sights on a second meeting with Wilder next year.
While speaking on his future, Fury said:
“The key tonight was to enjoy myself; I used the jab, I was slipping and sliding. I switched to southpaw and caught him with a straight left that would have put anyone away.
“I came here to have fun and put on a show for Las Vegas and I hope everyone enjoyed it as much as I did.
“We have September 21 or October 5 and then next year we’re going to hunt down Deontay Wilder and get me that green belt.”
Fury had promised to deliver Schwarz in the 1st round, which he didn’t deliver, but did in the 2nd round.
He had no trouble at all with Schwarz.