Binance Expands into Traditional Finance with Stock Options Launch

Binance is expanding its presence in traditional finance by offering options on about 1,000 US stocks and exchange-traded funds. This move comes after the company began trading in about 7,000 US-listed stocks and ETFs for users outside the US in June.

The options will be physically settled, meaning that when an option is exercised, users will receive or deliver the underlying US-listed stock or ETF. Alpaca Securities, a US-registered brokerage firm, will handle execution, clearing, settlement, and custody on behalf of Binance users.

Retail investors who qualify to trade options will be able to buy call and put options with their maximum loss limited to the premium paid for the option. Binance plans to add more supported stock options over time.

This move is part of Binance's effort to become a more complete multi-asset platform, according to Shuneet Jan, Binance's head of trading. He calls stock options an important next step in this process.