Binance said on Sept. 1 that it has launched options on U.S.-listed stocks and exchange-traded funds, with the first phase covering more than 1,000 underlying names. Eligible non-U.S. users can buy call or put options inside their Binance accounts to express bullish or bearish views or hedge existing stock positions.
Physical settlement with Alpaca handling brokerage functions
The product uses physical settlement. After exercise, the shares received or delivered will be held in custody for users by U.S. broker Alpaca Securities. Binance said the related trades are not directly executed by Binance, and the exchange does not directly custody the securities.
Under the setup described by Binance, Nest Trading Limited, a Binance affiliate regulated by Abu Dhabi Global Market (ADGM), acts as the introducing broker. Orders are then routed to Alpaca, a U.S.-registered self-clearing broker-dealer responsible for execution, clearing, settlement, and custody.
Service excludes U.S. users
Binance said the product is not available to U.S. users. In other regions, access depends on local regulations and user eligibility.
Before activating the service, users must complete a suitability assessment and sign a risk disclosure.
Launch phase allows only long options and limit orders
At the initial stage, users can only open long option positions. Writing options and establishing short positions are not available. Binance said the platform currently accepts limit orders only.
For option buyers, the maximum loss is limited to the premium paid. Even if a contract is in the money at expiry, users still need to submit exercise instructions before the deadline. If they do not, the platform will try to close the position before expiration, but it does not guarantee execution, and the contract may still end up losing all of its value.
Trading hours follow the U.S. equity market
Most products are available only during regular U.S. stock market hours, from 9:30 a.m. to 4:00 p.m. Eastern Time. Some ETF and exchange-traded note options can trade until 4:15 p.m. They do not run on the 24-hour schedule common in crypto markets.
Another step in Binance’s push into traditional finance products
The rollout comes after Binance introduced direct trading in more than 7,000 U.S. stocks and ETFs in June. Together with tokenized securities branded as bStocks and stock-linked perpetual contracts, the exchange is bringing crypto assets, traditional securities, and derivatives into a single account structure.
According to Binance’s own disclosure, trading volume in its traditional finance perpetual contracts reached about $433.4 billion in August, roughly 15 times the level recorded in January. Stock-linked products accounted for about 79% of that figure, or $342.9 billion.
Convenience rises, but so does complexity
The report said stock options could add depth to Binance’s existing U.S. equity business and create more room for cross-product trading and user retention. For investors, a single account and a stablecoin funding rail improve convenience. At the same time, options involve time value, volatility, liquidity, and expiration management, making them riskier and more complex than holding shares directly.
The report added that Binance’s shift toward a multi-asset financial platform is becoming clearer, while the outcome still depends on regulatory access across jurisdictions, product liquidity, and investor protection arrangements.