Binance Launches Options Tied to US Stocks, ETFs

Binance, the world’s largest cryptocurrency exchange, has launched an options trading service tied to US stocks and exchange-traded funds.

Bloomberg reported on September 1 that Binance introduced options contracts linked to more than 1,000 US stocks and ETFs through a partnership with Alpaca Securities, a US-registered broker-dealer. The service is being offered through Nest Trading Ltd., Binance’s Abu Dhabi entity, and is available only to users outside the US.

Shunyet Jan, Binance’s head of exchange and trading, told Bloomberg that using crypto infrastructure for traditional financial assets has become highly popular and works well in practice. Binance is offering the product to give users what they want and broaden their choices. He added that options can be a more precise tool for some users because they do not involve forced liquidation and let traders choose expiration dates themselves.

The new options service expands Binance’s lineup of products tied to traditional assets, following tokenized securities and perpetual futures. Binance said monthly trading volume in perpetual futures linked to traditional assets surged about 15-fold, from $30 billion in January to $445 billion in July. More recently, daily trading volume in perpetual futures tied to SanDisk shares surpassed that of Bitcoin.

Exchanges are increasingly embracing a super-app strategy by adding traditional financial products to keep users on their platforms. Coinbase and Kraken have also moved to launch similar products tied to traditional assets. Alpaca Securities handles order execution, clearing and custody.