Binance adds physically settled options on 1,000+ US stocks

Binance announced on Sept. 1 that it is offering physically settled options on more than 1,000 U.S. stocks and exchange-traded funds inside the same account that already holds crypto. Orders are introduced by Nest Trading Limited and routed to Alpaca Securities LLC for execution, clearing, settlement and custody.

The product is available only to eligible users outside the United States. Binance acts as the customer-facing platform; Nest serves as the introducing broker and Alpaca performs post-trade functions. Binance does not handle execution, clearing or custody of shares arising from option exercise.

A physically settled option can produce delivery of the underlying shares. Exercising a call can result in receipt of the shares, and exercising a put can require delivery of shares. Until exercise and settlement, an option remains a contractual right.

Binance’s announcement states that exercise instructions must be submitted through its platform by the relevant cutoff, which can be as late as 30 minutes before expiry. Contracts will not be exercised automatically without an instruction. Positions without an instruction may be subject to best-efforts auto-liquidation before trading closes and, if they cannot be sold, may expire worthless, leaving the holder with a loss equal to the premium paid.

Alpaca’s options documentation requires every customer account to be approved before the first options trade. Customers must provide financial information, trading experience, risk tolerance and investment objectives, and sign an options agreement before trading options on Alpaca.

Binance noted that eligible retail users may buy calls and puts with maximum potential loss limited to the premium paid. The exchange did not apply that defined-loss description to option-writing strategies. The offering remains subject to jurisdictional and user restrictions.

The options join three existing routes to equity exposure inside Binance accounts. Direct U.S. stock trading provides shares held through a U.S.-regulated clearing broker. bStocks are tokenized securities that do not convey direct ownership of the underlying share. Equity-linked perpetuals offer derivative exposure without delivery of the underlying share. Stock options add a route where underlying shares are delivered or received after exercise and then held by Alpaca on the user’s behalf.

Nest’s registration in the Abu Dhabi Global Market lists financial services permission 260000 and permits arranging deals and acting as an agent, while the register notes the firm cannot hold or control client money. Alpaca’s FINRA BrokerCheck profile identifies it as SEC- and FINRA-approved and lists options activity, securities clearing and settlement, and electronic trading among its services; Alpaca can hold funds or securities and provide clearing services for other broker-dealers.

Binance framed the launch as an expansion of multi-asset capabilities. Shunyet Jan, head of exchange and trading at Binance, described stock options as an important addition to the company’s multi-asset platform. Binance reported that equity-linked perpetuals generated about $342.9 billion in volume in August, represented roughly 79% of its TradFi perpetual activity and grew more than 800-fold since January.

Operationally, Binance controls product discovery and the customer experience while Nest and Alpaca perform regulated brokerage and custody functions. The ownership and settlement mechanics differ among the products presented inside a single Binance account, and Alpaca will hold any shares delivered after option exercise.