Binance is widening its move beyond cryptocurrency by launching physically settled options linked to more than 1,000 US-listed stocks and exchange-traded funds (ETFs) for eligible users outside the United States.
The service is being introduced through Nest Trading Limited, Binance’s broker-dealer regulated by Abu Dhabi Global Market. Nest will serve as the introducing broker, while US-registered Alpaca Securities will be responsible for executing trades and managing clearing, settlement and custody.
US customers will not be eligible to use the new options product.
The contracts will be physically settled, meaning that users who exercise an option will receive or deliver the underlying shares. Alpaca will hold those shares in custody on behalf of customers.
Eligible retail traders will be able to buy both call and put options. Their potential losses will be limited to the premium paid for the contract.
The launch adds another traditional financial product to Binance’s crypto-focused platform. The exchange already provides access to more than 7,000 US stocks and ETFs, as well as bStocks tokenised securities and equity-linked perpetual futures.
Binance said users from emerging markets accounted for more than 80% of direct stock-trading volume during the first week of its existing stock offering.
The latest expansion follows a sharp rise in trading activity involving traditional financial assets on the platform. Binance data cited in the announcement showed that trading volume in traditional-finance, or TradFi, perpetual futures reached about $433.4bn in August.
That figure was almost 15 times higher than the $29.5bn recorded in January.
Equity-linked perpetual futures made up about 79% of August’s TradFi activity, with monthly volume reaching $342.9bn. In January, the equivalent figure was $410.9m.
Shunyet Jan, Binance’s head of exchange and trading, described stock options as a significant stage in the company’s development into a multi-asset platform.
“By adding options on selected U.S. stocks and ETFs, we are expanding the tools available to users who want to participate in equity markets, manage exposure, and access strategies that have historically been offered through traditional brokers, all from one Binance account,” Jan said.
Binance’s move comes as cryptocurrency companies increasingly seek to offer shares, derivatives and other investment products through blockchain-linked systems.
Robinhood Chain recorded a daily decentralised-exchange, or DEX, volume record of $875m on 30 August. The seven most-traded tokenised stocks generated $4.3bn in DEX volume over the preceding 30 days.
Bitwise has also introduced three automated tokenised-stock portfolios for eligible investors outside the US. The portfolios combine Coinbase’s tokenised equities with automated portfolio infrastructure provided by Glider.
The developments point to growing competition between crypto platforms and traditional financial brokers. Rather than focusing solely on digital assets, exchanges are increasingly bringing together stocks, derivatives, tokenised securities and custody services within a single account.
That trend is reducing the distinction between a cryptocurrency exchange and a conventional brokerage, as companies compete to give customers access to a broader range of markets and investment strategies.
