Crypto Giant Coinbase Hints at First-Ever U.S. Bitcoin Margin Trading
A senior Coinbase executive has hinted at the possibility of offering margin (borrowed) trading – if it gains approval to do so. | Source: Shutterstock
By CCN: For years, the global bitcoin margin trading market has been dominated by BitMEX, which at one point reached a daily volume of $10 billion on May 12, a new record high for the company. Now, Coinbase and Binance are looking to enter the market.
New record for BitMEX trading volume. Praise be to volatility and our wonderful traders! pic.twitter.com/iLMGdpz65n
— Arthur Hayes (@CryptoHayes) May 12, 2019
The previous all-time high was reached in mid-2018 when BitMEX reached 1 million bitcoin in daily volume, equivalent to nearly $9 billion.
Speaking on The Block’s podcast The Scoop, Coinbase Vice President of Business, Data and International Emilie Choi has said the company is considering the addition of a margin trading feature on the platform.
Can it compete against binance and bitmex in bitcoin margin trading?
As emphasized by Choi, Coinbase would need sufficient regulatory clarity from U.S. authorities before enabling margin trading for clients.
BitMEX has not allowed U.S. bitcoin traders from trading on its platform and it remains unclear whether Binance would serve U.S. users once it opens its highly anticipated margin trading platform in the near future.
A Binance representative told TechCrunch that the exchange is looking to launch its margin trading option in the near-term.
Binance, in One-Two Punch to Rival Exchanges, Readies Margin Trading https://t.co/Z27GsA0XMg
— CCN.com (@CCNMarkets) May 24, 2019
If BitMEX and Binance concentrate their margin trading operations in other major markets outside of the U.S.,