Binance expands TradFi presence with options on 1,000 US stocks and ETFs
Binance is furthering its push into traditional finance by launching options trading on over 1,000 US stocks and exchange-traded funds for eligible users outside the United States. The options are offered through Binance’s Abu Dhabi-regulated broker-dealer, Nest Trading, with orders executed, cleared, and settled via US-registered Alpaca Securities. This expansion builds on Binance’s existing equities offerings of over 7,000 US stocks and ETFs, reflecting increased demand for traditional financial products on the platform.
Options Launch via Nest Trading and Alpaca Securities
Binance announced the launch of options trading on more than 1,000 US stocks and ETFs for users outside the United States. This service is facilitated through Nest Trading, a broker-dealer regulated in Abu Dhabi. Orders are routed to Alpaca Securities, a US-registered broker, which handles execution, clearing, settlement, and custody.
The options offered are physically settled, meaning that users who exercise them receive or deliver the underlying shares. This differs from equity-linked perpetual futures, which are cash-settled and do not involve delivery of the actual stock.
Growth in Traditional Financial Products on Binance
The expansion to options trading complements Binance’s existing offering of over 7,000 US stocks and ETFs available through the platform.
Trading volume in traditional financial perpetual futures has surged on Binance, hitting approximately $433 billion in August 2023, around 15 times the volume recorded in January 2023.
This demonstrates a rapidly growing trader interest in traditional financial assets within the crypto exchange environment.
Rapid Development of the Tokenized Stock Market
Coinciding with the expansion of tokenized equities, the onchain stock market has seen significant growth. The total distributed value of tokenized stocks is about $2.6 billion, up from roughly $346 million a year ago, according to RWA.xyz data.
Monthly transfer volume has risen 93% over the past 30 days to $25.1 billion, while the number of holders has surged 157% to nearly 2.5 million.
Other Market Initiatives in Tokenized Equities
Last week, Coinbase launched its B20 tokenized equities on Base, providing eligible non-US users 24/7 access to onchain versions of stocks such as Apple, Nvidia, Meta, and Alphabet.
Kraken expanded access in August by allowing eligible European customers to trade over 7,000 US-listed stocks, integrating them alongside its growing portfolio of tokenized xStocks.
In July, Robinhood announced Robinhood Chain and a new generation of Stock Tokens available to eligible users in more than 120 countries.
Why it matters
This announcement highlights Binance's efforts to integrate traditional finance with its crypto platform by expanding user access to sophisticated financial instruments such as options on US stocks and ETFs. The physical settlement of options and the massive increase in traditional asset volumes demonstrate rising interest in blending traditional and crypto markets. Concurrently, the growth of the tokenized stock market and activity by major players indicate that the trend of uniting onchain assets with real-world securities is accelerating, offering new opportunities for traders and investors globally.
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