Binance Launches Physically Settled Options On More Than 1,000 U.S. Stocks And ETFs: 17 outlets compared
Binance launches stock options
The options are physically settled, meaning that when an option is exercised, eligible users will receive or deliver the underlying shares of the applicable U.S.-listed stock or ETF, with Alpaca holding the shares in custody on behalf of Binance users.
Binance said the launch builds on its existing U.S. equities offering that provides access to more than 7,000 stocks and ETFs through Nest Trading’s relationship with Alpaca.
For retail users who qualify for options trading, Binance said the maximum potential loss for buyers is generally limited to the premium paid, and it said fees will primarily be paid in USDC with support for BNB, USDT, USD1 and $U where available.
Trading hours for most U.S. stock options will run from 9:30 a.m. to 4 p.m. Eastern Time, while certain ETF and ETN options may trade until 4:15 p.m.
How the structure works
Binance described the product as physically-settled options contracts on U.S.-listed stocks and ETFs, giving users the right to buy or sell underlying shares at a predetermined strike price on a specific expiration date.
In an interview, Shunyet Jan, head of exchange and trading at Binance, said, “I think using the crypto infrastructure for TradFi assets is very popular and it works very well,” and he added that Binance was “just giving what our users want and giving more choices.”
Jan also told Bloomberg that options provide benefits not found with perpetual futures, saying, “Crypto exchanges have been popular with perpetuals, but I do see a lot of players that want options you can’t get liquidated.”
Finance Magnates said the options launch is structured through Nest Trading Limited, with Alpaca Securities LLC executing, clearing and settling orders and providing custody, and it said exercise requests can be submitted up to 30 minutes before expiry.
Finance Magnates further said stock options are available for trading during regular hours from 9:30 AM to 4:00 PM ET, with certain ETF and ETN options subject to late-close exceptions that may continue trading until 4:15 PM ET.
Demand and multi-asset push
The company said equity-linked perpetual futures accounted for approximately 79% of Binance’s TradFi perpetual activity in August, generating about $342.9 billion in volume, compared with approximately $410.9 million in January.
In a statement carried by Reuters and other outlets, Binance framed the move as part of its evolution into a fuller multi-asset platform, with Shunyet Jan saying, “Stock options are an important next step in Binance’s evolution into a fuller multi-asset platform.”
CoinCodex said the offering went live on September 1 and is available to eligible users outside the United States, and it described the product as long-only at launch, with users able to buy calls and puts but not write options.
Binance also said it plans to add additional stock option listings over time, positioning the launch as part of a broader effort to develop a multi-asset platform that combines digital assets with access to traditional securities and derivatives.
