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Binance Launches Beta Mode of Margin Trading; Could Coinbase Add Support For It?

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binance exchange on mobile on stack of US dollars

Binance, one of the largest and most popular exchanges in the market, is currently offering margin trading in beta mode on its custodial exchange. This is part of a larger effort to provide users with Binance 2.0 and a re-designed interface for users. Nonetheless, the new feature is not going to be available in 29 different jurisdictions.

Binance Launches Margin Trading in Beta Mode

A few weeks ago, there was a user on Reddit that informed that Binance was trying to implement margin trading for users. He explained that he found this while experimenting with Binance’s public application programming interface – also known as API.

The crypto exchange promised on its white paper that it was going to be providing this feature in the future. The goal was to offer it after spot trading and before futures on its platform. Now that the spot exchange is working properly, the intention is to release as soon as possible the official margin trading feature for all users.

The Reddit user “lifofifo” said that they have enabled 9 different trading pairs for margin, including the following: BTC/USDT, BNB/BTC, BNB/USDT, ETH/BTC, ETH/USDT, TRX/BTC, TRX/USDT, XRP/BTC and XRP/USDT. After this discovery, the CEO of Binance, Changpeng Zhao, said that “Crowd intelligence is amazing,” making reference to this Reddit post.

At the same time, on May 8, Changpeng Zhao said about margin trading during a Periscope Ask Me Anything (AMA) session:

“I think most people have already seen the margin flags edit in our API. Yes, we are working on a margin [trading] system that’s rolling out actually very, very soon. We are going to first roll out [this system] to a few of our key clients, the large traders so that they can help us test.”

He has also mentioned that these users will be working closely in order to fix these issues. Moreover, they explained that they are going to be doing a gradual rollout of the margin platform.

According to a recent conversation that The Block had with the former VP of Business, Data & International at Coinbase, said that Coinbase is also working in order to add leverage trading in the future.

On the matter, he commented:

“Margin lend borrow is definitely going to be a next big step for us, especially on the active trader side.”

Nonetheless, he said that there is not a clear regulatory environment in the United States and they have to figure out how to deal with it. Binance decided not to offer margin trader to users in the US and other jurisdictions.

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