Binance Unveils Options Trading Service Tied to US Stocks and ETFs

Binance, the world's largest cryptocurrency exchange, has expanded its offerings by launching an options trading service tied to US stocks and exchange-traded funds (ETFs). The new product is available only to users outside the US through Binance's Abu Dhabi entity, Nest Trading Ltd.

The service allows users to buy and sell options contracts linked to over 1,000 US stocks and ETFs. This move follows a surge in demand for traditional financial products on cryptocurrency exchanges, with Binance reporting a 15-fold increase in monthly trading volume in perpetual futures tied to traditional assets, from $30 billion in January to $445 billion in July.

Binance's head of exchange and trading, Shunyet Jan, stated that using crypto infrastructure for traditional financial assets has become highly popular and works well in practice. The new options service aims to give users more choices and provide a more precise tool for traders who want to avoid forced liquidation and choose their own expiration dates.

The launch of options trading on Binance follows a trend among cryptocurrency exchanges, with Coinbase and Kraken also introducing similar products tied to traditional assets. Alpaca Securities handles order execution, clearing, and custody for the new service.