Binance Adds Options on 1,000 US Stocks and ETFs
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Binance has launched options trading on over 1,000 US stocks and ETFs for eligible users outside the United States. This service operates via Binance's Abu Dhabi-regulated broker-dealer Nest Trading and routes orders to US-registered Alpaca Securities for execution and custody. The options are physically settled, differing from equity-linked perpetual futures previously offered by Binance.
Why it matters
The expansion reflects Binance’s growing integration into traditional financial markets, highlighted by a substantial increase in TradFi perpetual futures trading volume to about $433 billion in August. The development signals broadening access to traditional financial products on crypto platforms, complementing the rise of tokenized stocks.
Key context
Binance already offers trading in more than 7,000 US stocks and ETFs and has witnessed rapid growth in traditional financial product trading on its platform. Tokenized stocks have increased significantly in market value and user base over the past year, with other exchanges like Coinbase, Kraken, and Robinhood also advancing tokenized and traditional equities offerings.
Key numbers and entities
Binance, Nest Trading (Abu Dhabi-regulated broker-dealer), Alpaca Securities (US-registered execution and custody). TradFi perpetual futures volume on Binance: approximately $433 billion in August 2023, 15 times the volume in January 2023. Tokenized stocks’ distributed value: about $2.6 billion, up from $346 million a year earlier. Tokenized stock holders: nearly 2.5 million, increased 157% in the past 30 days.
What remains unclear
The source does not specify eligibility criteria for users accessing the options trading or the timeline for broader availability. It also does not provide details on fees, potential risks, or regulatory implications beyond the involvement of Nest Trading and Alpaca Securities.