Coinbase Targets Institutional Traders With Margin Feature Launch

Coinbase's GDAX digital asset exchange has added a new margin trading feature.

Mar 20, 2017 at 5:06 p.m. UTC
Updated Sep 11, 2021 at 1:10 p.m. UTC

Coinbase's GDAX digital asset exchange has added a new margin trading feature.

The startup announced today that eligible customers can now trade with up to three times leverage in markets for bitcoin, ethereum and litecoin. According to Coinbase, the addition arose in light of rising institutional interest for such features.

With the launch, GDAX becomes the second US-based exchange to offered leveraged trading services after Kraken – though Coinbase said that residents in Wyoming, Hawaii and Minnesota won't be able to use them. Further, the exchange is limiting access to leveraged trading to select participants.

Adam White, head of GDAX, said in a statement:

"We are excited to launch a margin feature that meets the high demands of professional traders while addressing federal and state regulatory requirements. We believe this feature will attract a new wave of institutional clients, ultimately reducing volatility and supporting growth of the digital asset industry."

Access to ether-denominated margin trading won't be immediately available for traders in New York, but the company said that this support would be extended in the future. Further, each leveraged market will have a margin funding limit, capping the potential size of each trade.

The launch comes more than two years after GDAX first opened.

Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Coinbase. 

Image via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
No, the UK Is Not Going to Make USDC and USDT Legal Tender

For “legalize” read “regulate.”

For “legalize” read “regulate.”

CoinDesk - Unknown
2
CoinDesk - Unknown
Thoughts From Davos

The crypto industry showed up in force at the World Economic Forum’s annual meeting.

The crypto industry showed up in force at the World Economic Forum’s annual meeting.

CoinDesk - Unknown
3
CoinDesk - Unknown
Bitso, primer unicornio cripto de América Latina, despide a 80 empleados

El exchange, que tenía más de 700 empleados antes de los recortes, cuenta con cuatro millones de usuarios en la región.

El exchange, que tenía más de 700 empleados antes de los recortes, cuenta con cuatro millones de usuarios en la región.

CoinDesk - Unknown
4
CoinDesk - Unknown
Crypto's One Unassailable Use Case: Helping Human Rights Activists

The Oslo Freedom Forum was heavy on bitcoin and stablecoin discussions, underscoring that this technology is a tool for political dissidents, not just a get-rich-quick scheme.

The Oslo Freedom Forum was heavy on bitcoin and stablecoin discussions, underscoring that this technology is a tool for political dissidents, not just a get-rich-quick scheme.

CoinDesk - Unknown