San Francisco-based cryptocurrency exchange, Coinbase announced today that it has rolled out margin trading on the Coinbase Pro platform, with traders having a chance to trade with as much as 3x leverage.
Coinbase had discontinued its margin service in 2017 after it contributed to an ETH price flash crash from $300 to $0.3 but claims to have now resolved those issues to roll out a more robust margin trading service covering USD pairs on the exchange.
From the go, Coinbase Pro users in 23 U.S States can access the new margin trading feature if they meet the balance requirements, while institutional traders in 45 states can access the new functionality.
Additionally, institutional traders in nine international countries can use the service. At the same time, the company continues to expand the offering to other jurisdictions, increase the number of assets that can serve as collateral.
Coinbase's decision to reintroduce margin trading is likely an attempt to boost the company's falling share of the global crypto trading volume but will likely remain on the low side because of regulatory requirements in the United States.
Other offshore platforms, including Binance, BitMEX, and BitFinex, own a larger share of the market in part because they offer up to between 5x-100x leverage options to users.