Binance, the world’s largest cryptocurrency exchange by trading volume, has introduced physically settled stock options tied to more than 1,000 US-listed equities and exchange-traded funds (ETFs). The platform stated that the new product will be accessible exclusively to qualified users outside the United States, continuing its ongoing expansion into traditional financial offerings.
TradFi derivatives growth powers platform expansion
Binance has experienced rapid growth in its traditional finance derivatives segment, especially equity-linked perpetual futures. Trading volume in these products surged from $410.9 million in January to $342.9 billion in August. Overall, TradFi perpetual futures volume on the Binance platform reached $433.4 billion last month, climbing from $29.5 billion at the start of the year. Equity-linked perpetuals accounted for approximately 79% of Binance’s total TradFi perpetual trading volume in August.
These physically settled stock options will offer qualified retail users access to calls and puts, allowing investors to manage their risk or express market views on supported US equities and ETFs. The contracts are structured so that the buyer’s maximum possible loss is limited to the premium paid for the option.
Physically settled options differ from cash-settled or stablecoin-settled alternatives, as they deliver or receive actual shares on exercise rather than a cash equivalent. The service responds to growing demand among Binance clients for expanded access to traditional asset classes.
How Binance’s new stock options work
Binance’s new stock options will be distributed through Nest Trading Limited, a broker-dealer regulated by the Abu Dhabi Global Market. Nest Trading will serve as the introducing broker, routing customer orders to Alpaca Securities. Alpaca, a US-registered broker, is responsible for the execution, clearing, settlement, and custody of the underlying US securities associated with the exercised options.
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AAPLCustomers who choose to exercise their stock options will receive or deliver the actual US-listed shares corresponding to their contracts, with Alpaca Securities maintaining custody. Binance confirmed that US residents will not be able to access this service.
Mini dictionary: Alpaca Securities is a US-based brokerage firm that provides clearing, settlement, and custody for equities, collaborating with international partners to enable access to US financial markets for non-US clients.
| Month | Equity-linked Perpetuals Volume | Total TradFi Perpetuals Volume | Percentage Share |
|---|---|---|---|
| January | $410.9 million | $29.5 billion | 1.4% |
| August | $342.9 billion | $433.4 billion | 79% |
Industry competition and service differences
Binance’s launch follows a broader trend among major crypto exchanges introducing traditional asset products. In June, Binance gave eligible non-US users access to more than 7,000 US-listed stocks and ETFs. The firm also features bStocks tokenized securities alongside equity-linked perpetual futures. Market participants observed that offering physically settled options provides closer alignment with conventional finance models compared to synthetic or stablecoin-based solutions.
Rival exchange Bybit is also preparing to enter the market with its own equity-linked options service, set to launch 24/7 trading of perpetual contracts for SpaceX and Nvidia beginning September 17. While Bybit’s options will be based on stock perpetual contracts and settle in USDT, Binance will settle its exercised options through delivery of the actual underlying US equities managed by Alpaca for eligible clients.
Binance intends to expand the number of supported stock options over time, diversifying its offerings and responding to client demand for broader exposure to global equity markets.
