Bitcoin will gain more stability – hence more value – if hedge funds and other institutional investors would buy the cryptocurrency. So far, many big fish have stuck to the opinion that bitcoin doesn’t provide the financial products and regulatory compliance they require. And they stayed away.
The situation tends to change as more companies offer services for traditional investors that want exposure to bitcoin and other digital currencies.
Thus, Coinbase’s Global Digital Asset Exchange (GDAX) has announced that it has enabled margin trading. The exchange stated there will be no fees to access margin trading to celebrate the launch.
— GDAX (@GDAX) March 20, 2017
Eligible customers will be allowed to trade up to 3x leveraged orders on BTC, ETH, and LTC order books.
“Over the last few years, we have seen growing interest from institutions that desire advanced trading features. We are excited to launch a margin feature that meets the high demands of professional traders while addressing federal and state regulatory requirements”, GDAX says. “We believe this feature will attract a new wave of institutional clients, ultimately reducing volatility and supporting growth of the digital asset industry.”
The exchange unveils the ambitious goal to become the most trusted digital asset exchange for institutions and professional traders and to create a more transparent and fair market. The launch of margin trading as well as the introduction of the GDAX Trading Rules means a huge step towards this aim.
Margin trading is already available at GDAX.com.
At the beginning of the year, Coinbase was lucky to get approval of the virtual currency and money transmitter license from the New York Department of Financial Services. The exchange has become one of the largest bitcoin companies to gain the department’s approval.
The Department of Financial Services unveiled that it issued a license after a thorough review of Coinbase’s applications, including the company’s anti-money laundering, capitalization, consumer protection, and cyber security policies.
Along with Coinbase, the Department also granted money transmitter licenses to Ripple and Circle Internet Financial and trust charters to Gemini Trust Company, founded by the Winklevoss brothers, as well as itBit Trust Company.
Coinbase, the world’s largest bitcoin company, offers services for buying, selling, sending, receiving, and storing the cryptocurrency.
“At Coinbase, our first priority is to ensure that we operate the most secure and compliant digital currency exchange in the world,” says Brian Armstrong, Coinbase chief executive officer and co-founder.
As for now, Coinbase provides services in 32 countries. It has two trading platforms, one for retail investors and one for institutions.