Coinbase rolls out 10x spot leverage, but blocks US retail from it

Coinbase plans to introduce spot borrowing with up to 10x leverage, letting eligible traders borrow against collateral to buy crypto on spot markets, but US customers who do not qualify as Eligible Contract Participants will be excluded.

The exchange's Oct. 7 announcement puts the rollout in the coming weeks. Access will depend on customer eligibility and selected jurisdictions, but Coinbase does not identify those countries, so availability cannot be assumed for every trader outside the US.

For US individuals, a 2021 statement by a commissioner at the CFTC, the US derivatives regulator, describes discretionary investments exceeding $10 million in aggregate, or exceeding $5 million when the transaction is for risk management purposes. That distinction puts the planned service beyond ordinary US retail access.

The restriction applies specifically to spot borrowing, and Coinbase says the product is offered by affiliates and is separate from Coinbase Financial Markets, which offers US derivatives.

For US customers, the margin lenders will be Coinbase Custody International Limited or Coinbase Credit, Inc., even though traders would manage spot borrowing and derivatives exposure through a shared margin portfolio.

Coinbase completed the Deribit migration on Oct. 2, setting the stage for Coinbase's expansion, while the spot-margin plan adds a distinct borrowing option for eligible customers.