Binance Launches Stock Options for Traders
Binance now offers physically-settled stock options on U.S. Equities and ETFs, letting users hedge and manage risk from one crypto account.
Binance, the world's largest cryptocurrency exchange, launched physically-settled stock options on Tuesday, September 1. The new product offers contracts on U.S.-listed stocks and exchange-traded funds (ETFs).
Users gain the right to buy or sell underlying shares at a preset strike price on a specific expiration date. Binance positions this as part of a growing suite of traditional finance, or TradFi, products. The exchange says it lets traders express market direction, hedge equity positions, and manage portfolio risk from one account.
A Popular Infrastructure Shift
Shunyet Jan, head of exchange and trading at Binance, discussed the launch in an interview. "I think using the crypto infrastructure for TradFi assets is very popular and it works very well," Jan said. He added, "We are just giving what our users want and giving more choices."
Jan provided data showing strong user interest in traditional assets on the platform. He noted that the daily trading volume of perpetual futures tracking Sandisk recently exceeded that of bitcoin on Binance. Furthermore, the monthly volume of perpetual futures connected to traditional assets on the exchange surged to about $445 billion in July. This represents an increase from $30 billion in January, a roughly 15-fold jump according to company figures given to Bloomberg.
Options Versus Perpetual Futures
The crypto sector has long argued that perpetual futures are simpler for retail traders than options. Perpetual futures have no expiration dates and offer straightforward long or short leveraged exposure. However, Jan told Bloomberg that options still provide unique benefits not found with perpetual futures.
"Crypto exchanges have been popular with perpetuals, but I do see a lot of players that want options you can't get liquidated, you could get more direct dates," Jan stated. He characterized options as offering "more precision," calling them an interesting tool for a subset of users.
Broader TradFi and Banking Moves
In related news from the intersection of digital assets and traditional finance, a PYMNTS report from Tuesday highlighted a new consortium of global banks. The group includes Citi, Goldman Sachs, Wells Fargo, MUFG and Deutsche Bank. This consortium will establish a business focused on stablecoins.
The report, cited by the source, clarified the banks' strategy. "Banks are not abandoning tokenized deposits in favor of stablecoins. They are increasingly building both," it said. This approach reframes what has often been seen as a competition between different forms of digital money.
The effort is now described as an attempt by banks to assemble a portfolio of programmable money. The goal is to eventually route transactions toward whichever form has the optimal combination of liquidity, portability, regulation, and reach.
