Binance plans to add options on more than 1,000 selected U.S. stocks and exchange-traded funds through an Abu Dhabi-regulated brokerage arrangement, expanding its non-U.S. equities offering beyond share trading and equity-linked derivatives.
The options will be offered through Nest Trading Limited, a broker-dealer regulated by Abu Dhabi Global Market. Nest will route client orders to U.S. broker-dealer Alpaca Securities LLC, which is set to execute trades and provide clearing, settlement and custody services, according to Binance’s announcement.
The products will not be available to users in the United States. Binance said the rollout will operate under its ADGM-regulated framework, including onboarding checks, compliance controls, educational materials and risk disclosures.
For Binance, the launch extends an attempt to place conventional securities products alongside crypto services in a single account environment. The platform already offers access to more than 7,000 U.S. stocks and ETFs through the Nest Trading arrangement, while also listing equity-linked perpetual futures and tokenized securities products for eligible users.
Options add hedging and income strategies to stock access
Stock options give holders the right, though not the obligation, to buy or sell an underlying security at a pre-agreed price by a specified date. A call option gives the holder the right to buy; a put option gives the holder the right to sell.
That structure allows users to take directional positions with a smaller upfront premium than purchasing shares outright. It can also be used to hedge an existing stock position against losses or, in some strategies, generate premium income by selling options. Each approach carries distinct risks, particularly where contracts are close to expiry or the underlying share price moves sharply.
Binance described the new contracts as physically settled. If an eligible option is exercised, the process results in the delivery or receipt of the underlying shares rather than a cash payment based only on the contract’s final value.
Physical settlement gives options a more direct connection to the related stock or ETF position. A trader exercising an in-the-money call, for example, would receive shares at the option’s strike price, subject to sufficient funding and the platform’s terms. Exercising a put would involve delivering shares at the agreed strike price.
The arrangement differs from many crypto derivatives, which typically settle in cash or stablecoins and do not result in ownership of the referenced asset. It also means users need to pay closer attention to account balances, exercise instructions and settlement obligations as contracts approach expiry.
Trading follows U.S. market hours
Most options on U.S.-listed securities will trade from 9:30 a.m. to 4 p.m. Eastern Time, matching regular U.S. equity-market hours. Certain ETF and exchange-traded note options may remain open until 4:15 p.m. ET under late-close rules.
Binance said exercise requests can be submitted until 30 minutes before expiry. Positions that have not been closed or exercised before the platform’s cutoff may be subject to auto-liquidation on a best-efforts basis before the market closes. Options that expire out of the money can become worthless, causing buyers to lose the full premium paid.
Those mechanics make the product substantially different from spot crypto trading, where markets generally operate continuously. Users accustomed to round-the-clock execution would face fixed trading windows, expiry calendars and potential assignment or exercise events tied to the U.S. options market.
The scheduled nature of stock options can be particularly relevant during periods of sharp overnight moves. Company earnings, economic data and geopolitical events can move U.S. shares outside regular trading hours, while most listed options remain unavailable for trading until the next session.
Broker structure places U.S. securities functions with Alpaca
Nest Trading Limited will serve as the regulated intermediary for the offering, while Alpaca Securities will handle the core U.S. securities functions behind the trade. Execution determines how an order is filled; clearing and settlement complete the exchange of cash and securities; custody concerns the safeguarding of the resulting shares and other assets.
That division gives Binance a route into U.S.-listed securities without directly operating as the executing U.S. broker-dealer for the program. It also places trade processing and asset custody with Alpaca Securities, rather than with Binance’s crypto exchange infrastructure.
Binance said it expects to add more options listings over time, though it did not specify the first group of underlying stocks and ETFs or a launch date for the products.
The company’s existing conventional-finance product range also includes equity-linked perpetual futures listed on a Recognized Investment Exchange. Perpetual futures are derivatives without a fixed expiry date, generally maintained through periodic funding payments between long and short position holders. They can track the price of an equity or ETF without delivering the underlying shares.
Options add a separate category of exposure: contracts with defined strikes, expiry dates and premiums. Their inclusion gives eligible users ways to express views on volatility and downside risk that perpetual futures do not replicate cleanly.
The expansion may appeal most to users who already hold crypto assets but want access to U.S. equity markets without maintaining separate trading interfaces. Yet options introduce risks that go beyond simply predicting whether a stock will rise or fall. Time decay can erode a contract’s value even when the market moves in the expected direction, while leveraged or uncovered strategies can create losses that exceed the premium received or paid.
For eligible customers, the launch places stock options, share trading and crypto-linked instruments within one platform structure. The practical test will be whether Binance’s ADGM-based brokerage model can make those products accessible while preserving the controls, settlement discipline and risk management expected in the U.S. securities options market.
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