Binance opens options trading on more than 1,000 U.S. stocks and ETFs
Crypto exchange Binance has given users outside the U.S. access to options tied to more than 1,000 U.S. stocks and exchange-traded funds (ETFs). The new product was launched through the company's Abu Dhabi entity in partnership with U.S.-registered broker Alpaca Securities.
According to Bloomberg, the contracts are available through Nest Trading Limited, Binance's Abu Dhabi entity. Alpaca Securities will handle trade execution, clearing, and custody.
The launch expands Binance's range of products linked to traditional financial instruments. The exchange already offers products based on tokenized securities as well as perpetual futures tied to traditional assets.
Binance TradFi futures volume jumps 15-fold
Binance Head of Exchange and Trading Shunyet Jan said the use of crypto infrastructure for traditional financial assets is becoming increasingly popular. According to Jan, the company is expanding its offering in response to user demand.
Trading volumes support that trend. According to company data, monthly volume in perpetual futures tied to traditional assets increased roughly 15-fold, from $30 billion in January to about $445 billion in July.
Jan also noted that daily trading volume in perpetual futures tied to shares of storage manufacturer Sandisk at one point surpassed the volume of Bitcoin futures on Binance.
Options differ from perpetual futures in that they give holders the right, but not the obligation, to buy or sell an underlying asset at a specified price before a set expiration date. They allow traders to choose the timing and parameters of a position more precisely, while the maximum loss for an option buyer is limited to the premium paid.
Crypto exchanges expand access to traditional assets
Binance has become another major crypto platform to broaden its range of traditional financial instruments. Coinbase and Kraken are pursuing similar strategies as they seek to bring crypto, stocks, and other assets together within a single trading infrastructure.
The new Binance options are not available to users in the U.S. Despite being tied to U.S. stocks and ETFs, the contracts are offered through the exchange's international entity. Regulated U.S. broker Alpaca provides the infrastructure for executing trades.
Meanwhile, Binance continues to expand its crypto products. The exchange launched a rewards program for holders of Ethena's synthetic stablecoin, USDe, with a stated annual yield of 4.75%.
Rewards accrue daily and are distributed weekly, with no requirement to lock USDe. Users can continue using the asset for trading and as collateral while earning rewards on the platform.
Earlier, we reported that the Binance app became unavailable on Google Play in several European Union countries. The restriction affected some European users and created additional challenges for the exchange's app distribution in the region.
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