According to reports from Binance, the cryptocurrency exchange launched physically-settled stock options on September 1, providing eligible users access to contracts linked to selected U.S.-listed stocks and exchange-traded funds. The product allows users to purchase calls, which provide the right to purchase shares at a specified strike price, and puts, which provide the right to sell shares. Each contract features a fixed expiration date, with most contracts trading during regular U.S. market hours from 9:30 a.m. until 4:00 p.m. Eastern. The exchange is offering the service through Nest Trading Limited as the introducing broker, while U.S.-regulated Alpaca Securities acts as the clearing broker and holds shares delivered through exercised contracts on behalf of Binance users.
As reported by Binance, the initial product operates as long-only trading, meaning users can buy calls and puts but cannot write options or create uncovered short positions. This structure limits maximum direct loss to the premium paid for the contract, with contracts expiring without value if the market price does not move sufficiently beyond the strike price before expiration. The exchange has implemented phase one restrictions, supporting only limit orders with no market orders allowed. Users must complete an options suitability questionnaire and sign a disclaimer before trading, with the exchange not disclosing when it might add other order types, options writing or multi-leg strategies.
According to the announcement, physically settled options deliver the underlying shares when qualifying contracts are exercised, differing from cash-settled derivatives that close by paying the difference between a contract's strike price and the asset's settlement value. For call options, exercise gives the buyer the right to acquire underlying shares at the strike price, while puts provide the right to sell shares at that price. Shares resulting from settlement are held in custody by Alpaca Securities, with users able to monitor resulting positions through the platform's stock trading interface and Funding Account. The exchange did not publish a complete list of supported stocks and ETFs, requiring users to check whether an Options tab appears on individual stock pages.
As reported by Binance, Nest Trading acts as the introducing broker, providing the interface through which eligible users submit orders, while Alpaca Securities handles U.S. brokerage functions including execution, clearing and custody. Alpaca describes itself as a regulated, self-clearing broker-dealer and previously partnered with Binance when the exchange launched direct access to U.S. stocks and ETFs in June. Users can fund the service through their Funding Account, Spot Account or Flexible Earn holdings, with supported assets including USDC, USDT, USD1, U and BNB. The announcement does not provide a complete list of eligible countries, with Binance warning the product may be unavailable in some regions.
According to crypto.news reporting, ETFs reached 25% of Gen Z equity trading volume on Binance during early August, though Binance noted that direct-equities data covered a short period and did not establish a lasting investment trend. The exchange has not disclosed when it might add other order types, options writing or multi-leg strategies, with the phase-one label indicating the product could change but no additional rollout schedule announced. The next developments to watch include the addition of more underlying securities, broader order support and any expansion beyond long-only contracts, with Binance not setting deadlines for these changes.
