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Binance adds physically settled options on 1,000 US stocks and ETFs
Binance says the offerings are not available to U.S. users, with orders routed to Alpaca Securities for execution, clearing, settlement, and custody.
Binance is expanding its traditional finance push by adding physically settled options on more than 1,000 U.S.-listed stocks and exchange-traded funds, The Block reported.
The options will be offered through Nest Trading Limited, Binance's broker-dealer regulated by the Abu Dhabi Global Market. Nest will act as the introducing broker, routing orders to U.S.-registered Alpaca Securities for execution, clearing, settlement, and custody, and Binance said the products will not be available to U.S. users.
The contracts are physically settled, meaning that exercise results in users receiving or delivering the underlying shares of supported U.S.-listed stocks and ETFs, held in custody by Alpaca on behalf of Binance users. Retail users eligible for options trading will be able to buy calls and puts, with maximum potential loss limited to the premium paid, and Binance expects additional stock option listings over time.
The move follows Binance's June expansion, when it rolled out trading for more than 7,000 U.S.-listed stocks and ETFs for customers outside the United States. The Block also noted TradFi perpetual futures volume on Binance reached about $433.4 billion in August, roughly 15 times January's $29.5 billion, with equity-linked perpetuals accounting for about 79% of the total.