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.
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