Binance has launched physically settled options trading on over 1,000 US-listed stocks and ETFs for non-US users, offering new ways to manage equity exposure as demand for traditional finance products on crypto exchanges accelerates
Binance has introduced options trading on more than 1,000 U.S.-listed stocks and exchange-traded funds (ETFs) for users outside the United States, marking a significant expansion of its equities offering. The new product, which went live on September 1, is available through Binance's broker-dealer Nest Trading Limited, regulated by the Abu Dhabi Global Market (ADGM). All options trades are routed to Alpaca Securities LLC, a U.S.-registered broker-dealer and FINRA member, which handles execution, clearing, settlement, and custody of the underlying shares. This structure mirrors the approach Binance adopted for its spot stock and ETF trading, which launched in June 2026 and now covers over 7,000 U.S.-listed securities.
Product Structure and User Access
Unlike cash-settled derivatives, Binance's new stock options are physically settled, meaning that users who exercise their contracts receive or deliver the actual underlying shares, which are held in custody by Alpaca. To exercise a contract, users must submit their request at least 30 minutes before expiration. The options are available to retail users who meet eligibility requirements, allowing them to buy calls and puts with their maximum loss limited to the premium paid. Fees are primarily charged in USD Coin (USDC), but Binance also accepts BNB, Tether (USDT), World Liberty Financial USD (USD1), and United Stables (U), depending on availability. The product is not accessible to U.S.-based users due to regulatory restrictions.
Market Demand and Trading Volume
The launch comes as demand for traditional finance (TradFi) products on crypto exchanges has surged. According to Binance, total TradFi perpetual futures volume on its platform reached approximately $433.4 billion in August 2026, a 15-fold increase from $29.5 billion in January. Equity-linked perpetuals accounted for about 79% of this volume, generating $342.9 billion in August compared to $410.9 million at the start of the year. Binance reports that users in emerging markets made up more than 80% of direct stock trading volume during the first week after the June equities launch. The exchange also offers bStocks, a tokenized securities product, alongside its new options and equity-linked perpetuals.
Competitive Landscape and Regulatory Context
Other crypto exchanges are also moving to bridge the gap between digital assets and traditional equities. Bybit, for example, is preparing to launch 24/7 options on stock perpetuals, starting with contracts tied to SpaceX and Nvidia. Unlike Binance's physically settled options, Bybit's contracts are settled in USDT and linked to perpetuals rather than underlying shares. The expansion of equity-linked products on crypto exchanges comes as regulators continue to debate the appropriate oversight for these hybrid offerings. The Commodity Futures Trading Commission, for instance, is considering independent crypto market rules as legislative efforts such as the Digital Asset Market Clarity Act face delays in the Senate. For more on the regulatory environment, see EgonCoin's coverage of the CFTC's move to draft its own crypto regulations: how the CFTC is preparing to act without Congress.
Expansion Plans and User Impact
Binance has indicated it will expand the list of eligible stocks and ETFs over time, aiming to provide users with access to tools and strategies that have traditionally been available only through conventional brokers. The company positions its equities and options products as a way for non-U.S. users to manage exposure and implement strategies within a single Binance account, without the need for multiple intermediaries. As with all exchange-based products, users should consider the custody, settlement, and regulatory risks associated with holding equities and derivatives through offshore platforms.
Physically settled options differ from cash-settled contracts in that they require the actual delivery of the underlying asset upon exercise, rather than a cash payment reflecting the difference between the strike price and market price. This structure can introduce additional custody, settlement, and jurisdictional risks, especially when the underlying shares are held by a third-party broker outside the user's home country. Users should carefully review eligibility requirements, fee structures, and geographic restrictions before engaging with these products, and consider how regulatory changes could affect access or settlement in the future.
