Binance Launches Physically Settled Stock Options

Binance has launched physically settled stock options linked to more than 1,000 US-listed stocks and ETFs for eligible users outside the United States. The Binance stock options product offers calls and puts, but buyers cannot write options or open short positions. The maximum direct loss is the premium paid, although contracts can lose value through price movements, time decay, volatility and interest rates. Exercised Binance stock options deliver or require delivery of the underlying US shares, rather than cash, stablecoins or tokenised securities. Nest Trading Limited distributes the service, while Alpaca Securities handles execution, clearing, settlement and custody. US residents are excluded. Trading generally follows US market hours, and the initial phase supports limit orders only. Users must complete a suitability questionnaire and check asset pages for availability. The launch expands Binance’s traditional finance derivatives offering. Equity-linked perpetual futures volume rose from $410.9 million in January to $342.9 billion in August, while total TradFi perpetual futures volume reached $433.4 billion in August. Equity-linked products accounted for about 79% of that total. Binance previously offered eligible non-US users access to more than 7,000 US stocks and ETFs, tokenised securities and equity-linked perpetual futures, and plans to add more stock options. Bybit is also preparing stock-linked products, but its contracts will settle in USDT rather than through share delivery. For crypto traders, the Binance stock options launch broadens access to traditional finance and may increase competition among crypto platforms. However, it is unlikely to create an immediate, broad-based catalyst for cryptocurrency prices. Traders should monitor liquidity, regional restrictions, option availability and the risks of physical settlement.