According to Woofun AI, Coinbase Global, Inc. (COIN.US) plans to launch a spot borrowing service with leverage of up to 10x, aimed at giving traders who meet specific qualifications a collateral-backed channel to purchase crypto assets.
However, the service explicitly excludes US retail investors and is open only to a strictly defined category of eligible contract participants, underscoring the high bar for compliant access. The move marks another step by a mainstream exchange into high-leverage spot business, but the dual restrictions on geography and investor identity sharply narrow its audience.
On timing and eligibility, the platform issued an announcement on October 7 confirming the service will go live in the coming weeks. Although it did not disclose a specific list of supported countries, US individual users are constrained by the regulatory framework and will find it difficult to participate. The deeper reason is that the US Commodity Futures Trading Commission drew a line as early as 2021: investment activity is considered to require approval only if the total investment exceeds $10 million, or if transactions conducted for risk management purposes exceed $5 million. That means ordinary US retail investors cannot meet the "eligible contract participant" standard and are shut out. Notably, this restriction applies only to the spot borrowing business and is separate from the US derivatives business.
On business structure and asset details, data compiled by Woofun AI shows the service is provided by Coinbase Custody International Limited and Coinbase Credit, Inc., operating independently from Coinbase Financial Markets, which handles the US derivatives business. Previously, Coinbase completed the migration of the Deribit platform on October 2, laying the groundwork for this expansion. Eligible clients can use up to 10x leverage on certain major assets, while other supported assets are capped at 5x. Traders can use more than 15 assets as collateral, and all borrowing balances, collateral levels and margin status can be viewed in real time, enabling transparent management of risk exposure.
Despite the operational convenience, the risk warnings cannot be overlooked. Coinbase clearly states that collateral may be forcibly sold without notice and trigger liquidation, and that losses may exceed the initial deposit. The announcement did not disclose key parameters such as borrowing rates, collateral valuation haircuts, the discount rates applied to pledged assets, and liquidation thresholds. These missing details directly determine users' actual borrowing costs and the specific point at which collateral comes under risk, and investors need to be alert to potential asymmetric risk exposure.