Binance Offers Physically Settled Options on Over 1,000 US Equities
Binance has further expanded its traditional financial (TradFi) offerings by introducing physically settled options on over 1,000 US equities. This move enables users to buy and sell call and put options on a vast array of stocks within the same account that already offers cryptocurrency and equity exposure.
The product is limited to eligible users outside the US, and the securities machinery behind the offer does not belong to Binance. Instead, it has partnered with Nest Trading Limited and Alpaca Securities LLC, which will introduce the orders and route them to Alpaca for execution, clearing, and settlement.
Binance's head of exchange and trading, Shunyet Jan, called stock options an 'important next step' towards a 'fuller multi-asset platform.' The company has also emphasized that the options are physically settled, meaning that exercising a call can produce the underlying shares, while exercising a put can require delivery of them.
The launch of stock options joins three existing routes to equity exposure within Binance, including direct US stocks, bStocks, and equity-linked perpetuals. The company has stated that eligible retail users may buy calls and puts, with maximum potential loss limited to the premium. However, it's essential for users to understand which firm holds the asset, which rules govern the account, and what action they must take before an option expires.