Binance Expands Into U.S. Stock Options as Monthly TradFi Perpetual Volume Hits $433 Billion

Binance is expanding its traditional-finance business with physically settled options covering more than 1,000 U.S.-listed stocks and exchange-traded funds (ETFs), available to eligible customers outside the United States.

The expansion follows a steep increase in activity across the exchange’s traditional-asset derivatives. Binance said its TradFi perpetual futures generated about $433.4 billion in trading volume in August, roughly 15 times the $29.5 billion recorded in January.

Equity-linked perpetuals drove most of that activity. Their monthly volume rose from $410.9 million in January to $342.9 billion in August, when they represented about 79% of Binance’s TradFi perpetual trading.

Nest and Alpaca to Handle the Options Business

Binance will provide the new options through Nest Trading Limited, its broker-dealer regulated by the Abu Dhabi Global Market. Nest will operate as the introducing broker rather than handling the trades through to settlement.

Orders will instead be sent to U.S.-registered Alpaca Securities, which will handle execution, clearing, settlement, and custody. U.S. users will not have access to the product.

Because the contracts use physical settlement, exercising them involves receiving or delivering the shares underlying the supported stocks and ETFs. Alpaca will hold the resulting securities on behalf of Binance customers.

Eligible retail users can purchase calls and puts, with buyers’ potential losses capped at the premium paid. Binance said it expects to expand its stock options offering over time.

The options follow Binance’s June rollout of access to more than 7,000 U.S.-listed stocks and ETFs for customers outside the United States. Its product range also includes bStocks tokenized securities and equity-linked perpetual futures in addition to its cryptocurrency offerings.

Shunyet Jan, Binance’s head of exchange and trading, said stock options are part of the company’s move toward a broader multi-asset platform. He said the offering will allow users to participate in equity markets, manage their exposure, and access strategies historically offered through traditional brokers from a Binance account.

Bybit Takes a Different Route to Equity Options

The expansion is unfolding as Bybit prepares its own equity-linked options product. The crypto exchange is due to start 24/7 options trading on Sept. 17, initially using perpetual contracts linked to SpaceX and Nvidia as the underlyings.

The two offerings differ in their settlement structure. Binance’s options are physically settled in U.S.-listed securities, while Bybit’s contracts are options on stock perpetuals and settle in USDT.