Binance is expanding into traditional-finance derivatives with the launch of physically settled options covering more than 1,000 U.S.-listed stocks and exchange-traded funds. The product is available to eligible customers outside the United States.
The move follows significant growth in Binance's TradFi perpetual futures business. The exchange reported $433.4 billion in trading volume for these contracts in August, up from $29.5 billion in January. Equity-linked perpetuals drove most of this activity, rising from $410.9 million in January to $342.9 billion in August, representing approximately 79% of TradFi perpetual trading.
Operational Structure
Binance will offer the options through Nest Trading Limited, its broker-dealer regulated by the Abu Dhabi Global Market, which will serve as the introducing broker. Execution, clearing, settlement, and custody will be handled by Alpaca Securities, a U.S.-registered firm. The contracts use physical settlement, meaning exercise results in delivery or receipt of the underlying shares, with Alpaca holding securities on behalf of Binance customers.
U.S. users will not have access to the product. Eligible retail users can purchase calls and puts, with buyers' maximum losses limited to the premium paid. Binance indicated plans to expand its stock options offering over time.
Broader Platform Strategy
The options launch follows Binance's June rollout of access to more than 7,000 U.S.-listed stocks and ETFs for customers outside the United States. Binance's product range now includes bStocks tokenized securities, equity-linked perpetual futures, and cryptocurrency offerings.
Shunyet Jan, Binance's head of exchange and trading, described the options as part of the company's expansion into a multi-asset platform, enabling users to access equity market participation and strategies traditionally available through established brokers.
Competitive Landscape
Other crypto exchanges are developing similar products. Bybit is launching 24/7 options trading on September 17, initially offering contracts linked to SpaceX and Nvidia that settle in USDT rather than physical securities.
