Binance Unveils Physically Settled Options on 1,000+ US Stocks and ETFs

Binance has expanded its reach into traditional finance by launching physically settled options on over 1,000 US stocks and ETFs. The product went live on September 1st and is available to eligible users outside the United States.

The new options feature settles physically, meaning that when a contract is made, the user receives or delivers the underlying shares instead of getting the difference in value paid out.

For example, a successful call option turns into an equity position in the same account, rather than a cash gain. This offering runs through two brokerage partners: Nest Trading Limited and US-registered Alpaca Securities.

Binance's Head of Exchange and Trading, Shunyet Jan, said that the launch is part of efforts to make Binance a complete trading platform. 'Stock options are an important next step in Binance's evolution into a fuller multi-asset platform,' he stated.

The new offering comes with some limits: trading is long-only at launch, meaning users can buy calls and puts but not write options or take on short positions. Users also need to complete an options suitability questionnaire and sign a disclaimer before they can start trading.