Binance has introduced physically settled options contracts covering more than 1,000 U.S.-listed stocks and exchange-traded funds. The product became available on September 1, 2026, to qualified users outside the United States.

Eligible customers can purchase call and put options on major names and ETFs. Upon exercise, contracts deliver the underlying shares rather than a cash settlement. Those shares are held in custody by the clearing partner on behalf of users.

Structure and Settlement Mechanics

The offering operates through Nest Trading Limited, a broker-dealer regulated by the Abu Dhabi Global Market, which serves as the introducing broker. Orders are routed to Alpaca Securities LLC, a U.S.-registered firm responsible for execution, clearing, settlement, and custody of the resulting shares.

Physical settlement means an exercised call transfers ownership of the underlying equity to the buyer, while an exercised put involves delivery of shares under the contract terms. Positions remain under Alpaca’s custody rather than converting automatically to cash. Users monitor these holdings through Binance’s stock interface and Funding Account.

Phase one is restricted to long-only positions. Buyers may acquire calls for upside exposure or puts for downside protection, but they cannot write options or open short option positions. Maximum loss for buyers is limited to the premium paid. Only limit orders are accepted, requiring traders to specify their maximum purchase price.

Trading follows standard U.S. options market hours, generally from 9:30 a.m. to 4:00 p.m. Eastern Time, with certain ETF and exchange-traded note contracts extending to 4:15 p.m. Pre-market and after-hours trading are not supported for most names. Premiums can be funded from the Funding Account, Spot Account, or Flexible Earn balances using supported assets that include USDC, USDT, USD1, U, and BNB.

Exercise instructions must be submitted before the designated cut-off on expiration day. Contracts without instructions are subject to auto-liquidation on a best-efforts basis ahead of market close. Users determine availability by checking for an Options tab on a given stock’s price page.

Growth in Traditional Finance Activity

The launch occurs amid rapid expansion of Binance’s traditional finance derivatives. TradFi perpetual futures volume reached approximately $433.4 billion in August, up from $29.5 billion in January. Equity-linked perpetuals accounted for roughly 79 percent of that total, rising from $410.9 million in January to $342.9 billion in August.

This product builds on earlier steps in Binance’s TradFi development. In June 2026 the exchange opened direct trading in more than 7,000 U.S. stocks and ETFs, offering zero-commission access and fractional shares starting at $5. It later introduced bStocks, ADGM-approved certificates on BNB Chain that convert 1:1 into the underlying shares. Cash-settled gold and silver options followed in July.

Binance has indicated it plans to broaden the range of supported stock options over time in response to client demand. The current phase includes suitability questionnaires, risk disclosures, and compliance checks under the ADGM framework. The service remains unavailable to U.S. residents.

Rival platforms are also advancing equity-linked products. One competitor has scheduled a launch of perpetual options on selected names with stablecoin settlement, differing from Binance’s physical delivery model.

Operational Details and Access

Customers who have not yet activated stock trading can complete onboarding for both equities and options through the same process. The exchange has not published a full list of supported underlyings in its general announcement; availability appears on a ticker-by-ticker basis. No timeline has been given for the addition of options writing, multi-leg strategies, or alternative order types.

The combination of spot equities, tokenized certificates, perpetual futures, and now physically settled options places multiple traditional asset tools within a single account structure for eligible users. Settlement and custody remain under the regulated brokerage arrangement with Nest Trading and Alpaca Securities.