Binance Dives into TradFi with Options on 1,000+ US Stocks

Binance, one of the largest cryptocurrency exchanges, has made its latest move into traditional finance by offering direct access to options on over 1,000 US stocks and ETFs. However, this new feature is only available to international customers at this time.

This expansion marks Binance's goal of presenting itself as a full investment platform, not just a cryptocurrency marketplace. According to Hesom Parhizkar, cofounder of AdvizorPro, 'Binance increasingly wants to be viewed as a full investment platform.' He notes that crypto remains a relatively small pool of assets compared to traditional wealth management and RIA markets.

Binance already has the necessary infrastructure in place, making it easier for users to navigate. Parhizkar believes this user experience is 'more modern than what investors encounter at traditional custodians.' Other exchanges like Coinbase, Robinhood, and Kraken are also combining crypto offerings with traditional or tokenized equities.

The trend of converging crypto and traditional finance continues to gain momentum, as Hesom Parhizkar puts it, 'the dividing line between crypto and traditional finance is becoming much less meaningful to the end investor.' Binance's move may be a response to competitive pressure from other large asset managers.