Binance has launched over 1,000 physical delivery options for US stocks and ETFs for eligible non-US users; upon exercising the options, users will receive or deliver the corresponding physical US stocks, with the underlying stocks held by US-registered broker Alpaca Securities.

The product is offered through Abu Dhabi-regulated broker Nest Trading Limited, with orders executed, cleared, settled, and held by Alpaca. US users cannot access this service; the product covers a "selected" range of US-listed stocks and ETFs, rather than being open to all US stocks.

The difference between physical delivery and cash settlement is that exercising at expiration does not only settle the cash difference of the option's intrinsic value. Call option buyers receive the underlying shares upon exercising, while put option holders must deliver the corresponding shares; this extends Binance accounts from merely crypto assets or derivatives accounts to a multi-asset entry point that can hold custodial US stock rights.

Binance reported that the trading volume of traditional financial perpetual contracts in August was approximately $433.4 billion, about 15 times that of January's $29.5 billion. Among this, the trading volume of stock-linked perpetual contracts was about $342.9 billion, accounting for approximately 79% of TradFi perpetual contract volume; this category had a trading volume of $410.9 million in January, growing over 800 times in eight months. This data was disclosed by Binance.

The platform launched trading for over 7,000 US stocks and ETFs in June, and this options offering is a continuation of its product line for spot stocks, ETFs, and TradFi perpetual contracts. Binance integrates spot, perpetual, options, and stablecoin settlements within a single account, directly targeting the multi-product account stickiness of traditional internet brokers.

In terms of market mechanics, buyers are international traders looking to hedge or amplify their US stock risk exposure using crypto platform accounts in non-US time zones; sellers include market makers providing implied volatility quotes, inventory management, and delta hedging. Funds will flow into Nest, Alpaca, custodial, clearing, options market making, stablecoin deposits and withdrawals, and cross-market hedging; traditional brokers will face pressure from account asset outflows and product integration competition, but Binance remains limited by regional access, regulatory approvals, securities custody arrangements, and US stock market trading hours.

Source: Public Information