Binance adds options trading on 1,000 US stocks
Binance expands traditional finance services by launching options trading on over 1,000 US stocks and ETFs through its Abu Dhabi-regulated broker.
Curtis Lawson 2 min read
A significant expansion into traditional finance
Binance is taking a significant step into traditional finance by introducing options trading on more than 1,000 US stocks and exchange-traded funds (ETFs) for eligible users outside the United States. This move was reported by Cointelegraph, which noted that the rollout is facilitated through Binance’s Abu Dhabi-regulated broker-dealer, Nest Trading.
Options trading and execution model
The options offered by Binance are notable for being physically settled, meaning that when users execute these options, they receive or deliver the actual underlying shares instead of cash settlements. The execution of these options will occur through US-registered Alpaca Securities, which will handle orders, clearing, and custody.
Growth in traditional financial products
This launch builds upon Binance’s extensive equities offering, which already includes over 7,000 US stocks and ETFs. Demand for traditional financial products on the Binance platform appears to be increasing, with TradFi perpetual futures volume reportedly reaching approximately $433 billion in August alone. This figure marks an astonishing fifteenfold increase compared to January’s trading volume.
Surge in tokenized equities
As the landscape for both cryptocurrency exchanges and traditional brokerages evolves, the onchain stock market has expanded significantly over the past year. According to data from RWA.xyz, tokenized stocks now represent about $2.6 billion in total distributed value, a noticeable rise from around $346 million at the same time last year. The report also highlighted a 93% increase in monthly transfer volumes, which surged to $25.1 billion, with the number of holders climbing by 157% to nearly 2.5 million.
Competitive landscape in equity trading
Other platforms are also diversifying their equity offerings. For instance, Coinbase has recently introduced its B20 tokenized equities on Base, providing eligible non-US users with round-the-clock access to onchain representations of major stocks like Apple and Nvidia. Likewise, Kraken has made available over 7,000 US-listed stocks for eligible European customers and is promoting its tokenized xStocks. Meanwhile, Robinhood’s recent launch of Robinhood Chain features a new generation of Stock Tokens for users across more than 120 countries.