Binance Enters U.S. Stock Options Market with Physically Settled Contracts

Binance is expanding its traditional-finance business by offering physically settled options covering over 1,000 U.S.-listed stocks and ETFs to eligible customers outside the United States.

This move follows a significant increase in activity across Binance's traditional-asset derivatives. The exchange reported that its TradFi perpetual futures generated about $433.4 billion in trading volume in August, up from $29.5 billion in January.

The expansion will be handled by Nest Trading Limited, a broker-dealer regulated by the Abu Dhabi Global Market, which will operate as the introducing broker. Orders will be sent to U.S.-registered Alpaca Securities for execution, clearing, settlement, and custody.

Binance users can purchase calls and puts through the new options product, with buyers' potential losses capped at the premium paid. The exchange expects to expand its stock options offering over time.