Coinbase Introduces 10x Spot Leverage for Eligible Traders, Excludes US Retail

Coinbase is set to roll out a new spot borrowing feature allowing eligible traders to utilize up to 10x leverage for buying cryptocurrencies on spot markets. However, this service will not be available to US retail customers who do not qualify as Eligible Contract Participants.

The announcement, made on October 7, indicates that the feature will be available in the coming weeks, with access dependent on customer eligibility and jurisdiction. Specific countries where the service will be available have not been disclosed.

For US individuals, a 2021 statement from a CFTC commissioner outlines that discretionary investments exceeding $10 million or $5 million for risk management purposes are required to access such services, placing this offering beyond the reach of ordinary retail investors.

Coinbase’s spot borrowing service will allow eligible users to borrow against collateral, with maximum leverage set at 10x for major assets and 5x for others. Traders can post collateral in over 15 supported assets, but the collateral will remain exposed to liquidation risks.

While the feature aims to enhance trading capabilities, Coinbase has cautioned that leveraged trading can magnify both gains and losses, and collateral may be liquidated without notice. The specifics regarding borrowing rates and liquidation thresholds have yet to be revealed.