schannel is the API Microsoft provides to allow applications to for example implement SSL natively, without needing any third part library.
On Monday June 11th we merged the 30+ commits Marc Hörsken brought us. This is now the 8th SSL variation supported by libcurl, and I figure this is going to become fairly popular now in the Windows camp coming the next release: curl 7.27.0.
So now my old talk about the seven SSL libraries libcurl supported has become outdated...
It can be worth noting that as long as you build (lib)curl to also support SCP and SFTP, powered by libssh2, that library will still require a separate crypto library and libssh2 supports to get built with either OpenSSL or gcrypt. Marc mentioned that he might work on making that one use schannel as well.