Binance has introduced physically settled options linked to more than 1,000 U.S.-listed stocks and exchange-traded funds for eligible customers outside the United States, giving users of its multi-asset platform a way to take options positions that can result in delivery of actual shares.
The contracts, announced by Binance, will be offered through Nest Trading Limited, a broker-dealer regulated in Abu Dhabi Global Market. Nest will act as an introducing broker, while U.S.-registered Alpaca Securities will execute, clear and settle trades and provide custody for any shares delivered after an option is exercised.
The structure sets the product apart from crypto-style equity derivatives that settle in stablecoins or cash equivalents. A customer who exercises a call option can receive the underlying shares, while the writer of an exercised put option may be required to purchase them. Alpaca Securities will custody those shares for eligible users, Binance said.
The service is unavailable to U.S. users.
Options add share delivery to Binance’s equity products
Binance said eligible retail accounts will initially be able to buy calls and puts, rather than sell uncovered options. That limitation means a buyer’s maximum potential loss is limited to the premium paid for the contract, while retaining exposure to movements in the underlying stock or ETF.
A call option gives its holder the right to buy shares at a predetermined price before or at expiration, while a put grants the right to sell. Physical settlement means an exercised contract leads to the transfer of the actual security rather than a cash payment based on the price difference.
That arrangement could appeal to customers who want to use options for a stock position they ultimately intend to hold, rather than solely trading short-term price movements. It also brings operational demands that do not apply to many crypto derivatives: users must understand exercise terms, expiration dates and the possibility that their account could receive or need to fund a share position.
Binance said it plans to expand the range of available stock options over time. It did not specify the full initial list of eligible stocks and ETFs, contract expiries, exercise conventions, or the jurisdictions where the service will be offered.
Alpaca Securities will execute and custody transactions
Nest Trading Limited’s role as an introducing broker means it will connect customers and their orders to Alpaca Securities rather than serve as the final executing and clearing firm itself. Alpaca Securities will handle the transaction process after an order is placed, including execution, clearing, settlement and custody, according to Binance.
The use of a U.S.-registered broker for these functions gives the product a conventional securities-market backbone, even though it is being accessed through Binance’s broader trading environment. Settlement and custody of U.S. equities remain within the broker-dealer structure rather than on a blockchain.
Binance has been building that multi-asset setup over recent months. In June, the company launched access to more than 7,000 U.S.-listed stocks and ETFs for customers outside the United States. It also offers bStocks, its tokenized securities product, and equity-linked perpetual futures alongside cryptocurrency trading.
The new options offering extends that lineup from spot share access and synthetic derivatives into contracts that can deliver underlying equities. It gives users several ways to approach a U.S. stock: holding shares directly, trading a tokenized representation where available, using a perpetual futures contract, or purchasing an option with a defined premium cost.
Product arrives as rivals test equity derivatives
Competition around stock-linked products has intensified among cryptocurrency platforms seeking customers interested in both digital assets and conventional markets. The offerings differ sharply in their mechanics, particularly around settlement.
Bybit is scheduled to launch 24/7 options on stock perpetual futures on Sept. 17, beginning with contracts linked to SpaceX and Nvidia. Those products will settle in USDT and are tied to perpetual futures positions, rather than giving traders a route to receive shares of the underlying company.
Binance’s physical settlement model places its new contracts closer to traditional listed equity options in one central respect: exercise can lead to share ownership. Yet the service will be delivered through an international platform arrangement involving an Abu Dhabi-regulated introducing broker and a U.S.-registered clearing and custody provider.
The distinction will matter most around expiry. A USDT-settled derivative allows a trader to close or settle a position without handling shares. Physically settled options can produce a stock position if exercised, which may suit a user seeking equity exposure but may be less suitable for someone expecting every trade to remain a purely cash-settled derivative.
Binance frames launch around multi-asset accounts
Shunyet Jan, Binance’s head of exchange and trading, said the launch was designed to widen the tools available for equity-market participation and risk management within a single account.
For customers already using Binance for digital assets, the product could reduce the need to move between separate interfaces for crypto holdings, stock trading and equity options. The practical benefit depends on local eligibility rules and on the individual customer’s ability to fund and manage share delivery following exercise.
The rollout also avoids some of the risk profiles associated with more advanced options activity by limiting eligible retail accounts to purchasing calls and puts. Buyers can lose the premium they pay if their market view proves wrong, but they do not face the potentially open-ended losses associated with writing uncovered calls.
Binance’s expansion does not erase the differences between crypto markets and U.S. securities markets. The underlying shares are traded, cleared and held through securities-market infrastructure, while Binance’s platform serves as the customer-facing gateway for a product aimed at non-U.S. users. The result is a more connected trading menu, but one where options users will need to pay close attention to settlement mechanics rather than treating stock-linked contracts as interchangeable with perpetual futures.
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