In a significant expansion beyond cryptocurrency, Binance has launched physically settled options trading on more than 1,000 US-listed stocks and exchange-traded funds (ETFs). The new service, available to qualified customers outside the United States, allows users to trade traditional securities contracts through their existing Binance accounts, marking a major step in the exchange's efforts to bridge crypto and conventional finance.
The announcement, made on September 2, 2026, from Abu Dhabi, reveals that Binance's traditional finance (TradFi) perpetual contracts volume reached $433.4 billion in August, nearly 15 times higher than the $29.5 billion recorded in January. Equity-linked perpetuals alone generated $342.9 billion in volume, representing 79% of the total TradFi activity. This surge indicates strong demand for traditional asset exposure through crypto-native platforms.
The options catalog, covering at least 14.3% of Binance's 7,000+ cash-equity listings, provides a targeted initial offering. However, it taps into a massive market: US equity and ETF options see an average daily volume of 64.6 million contracts, according to the Options Clearing Corporation (OCC). Equity options volume is up 14.8% year-over-year, while ETF options have surged 35%, highlighting the growth potential for Binance.
Shunyet Jan, Binance's head of exchange and trading, emphasized the strategic importance: “Stock options are an important next step.” He noted that users can now manage equity exposure through a single Binance account, simplifying access to traditional markets. The service, however, is not available to US users; qualified international customers can purchase calls and puts, with maximum loss limited to the premium paid.
Behind the scenes, the operational structure relies on established partners. Nest Trading, regulated by Abu Dhabi Global Market (ADGM), handles account introduction and order routing. Alpaca, a US-based broker-dealer registered with the SEC and FINRA, manages execution, clearing, settlement, and custody of the underlying shares. Binance itself does not hold the securities, ensuring regulatory compliance in the US.
The contracts are physically settled, meaning exercising a call option results in share delivery, while puts may require delivery of shares. Users must submit exercise instructions before the cutoff, even if contracts expire in-the-money, to avoid forfeiting value. This introduces operational complexities that Alpaca co-founder Yoshi Yokokawa acknowledged: “Options introduce unique requirements such as approvals, margin, exercise, and assignment. We manage these processes internally.”
Early indications from Binance's cash-equity products show promise. In the first week of US stock trading, assets surpassed $400 million, with 40% of transactions under $100. Notably, about one in four stock users were under 25, and around 70% demonstrated holding patterns. While options could boost engagement further, Binance has not disclosed specific contract volume or revenue projections.
Risks remain, including potential loss of full premiums, jurisdictional restrictions, and low-liquidity contracts. The bulk of trading occurs during US market hours (09:30-16:00 EDT). Investors are advised to monitor recurring activity and option volumes in the coming months to gauge adoption. As Binance continues to expand its TradFi offerings, the move underscores a broader trend of crypto exchanges integrating traditional financial instruments, potentially reshaping how global investors access both markets.
