Binance expands TradFi offerings with physically settled options on over 1,000 US equities

Binance has added physically settled options on more than 1,000 selected U.S. stocks and exchange‑traded funds (ETFs) to its platform. The new product is available only to eligible users outside the United States and is delivered through a partnership with Nest Trading Limited and Alpaca Securities LLC.

How the service works

Binance acts as the customer‑facing interface. When a user places an options order, Nest Trading introduces the order to Alpaca, which then executes, clears, and settles the trade. If an option is exercised, Alpaca holds the resulting shares on the user’s behalf.

Roles of the participants

• Binance: Provides the trading interface and manages order submission.
• Nest Trading Limited: Serves as the introducing broker, routing orders to Alpaca.
• Alpaca Securities LLC: Executes trades, handles clearing and settlement, and custodians any delivered shares.

Product characteristics

• Options are physically settled – exercising a call delivers shares, exercising a put requires delivery of shares.
• Users must submit an exercise instruction via Binance up to 30 minutes before expiry; no automatic exercise occurs.
• Unexercised in‑the‑money positions may be auto‑liquidated or expire worthless.
• Retail participants can buy calls and puts with loss limited to the premium paid.

Integration with existing equity products

Binance already offers three equity‑related routes: direct U.S. stock ownership through a regulated clearing broker, tokenized “bStocks,” and equity‑linked perpetual contracts. The new options add a fourth, regulated pathway that delivers actual shares after exercise.

Regulatory backdrop

Nest Trading is registered in the Abu Dhabi Global Market with financial services permission to arrange deals and custody, but it cannot hold client money. Alpaca is a FINRA‑ and SEC‑approved broker‑dealer authorized to clear, settle, and hold securities for other firms.

Strategic significance

Binance’s head of exchange and trading, Shunyet Jan, described the launch as an “important next step” toward a broader multi‑asset platform. By leveraging Nest and Alpaca for execution and custody, Binance can offer a securities‑super‑app experience without directly handling clearing or custodial responsibilities.