Binance is set to list USDT-settled options contracts on gold and silver through its Abu Dhabi Global Market-regulated exchange, marking a significant expansion of its regulated traditional asset offerings alongside cryptocurrencies.
How the contracts work
The new instruments will be listed through Nest Exchange Limited, Binance’s ADGM-recognised Recognised Investment Exchange (RIE). Traders gain price exposure to gold and silver without taking physical delivery of the underlying metals.
Retail participants are restricted to buying options only, capping their maximum loss at the premium paid. Eligible institutional users and liquidity providers are permitted to write contracts, allowing them to collect premiums in exchange for taking on the associated obligations.
The launch follows Binance’s introduction of gold and silver perpetual futures in January, continuing the exchange’s push to bring regulated access to traditional asset classes through crypto-native products.
Crypto firms expand commodity offerings
Binance’s derivatives-based approach contrasts with strategies taken by other crypto firms in the commodity space. Tether and Paxos have focused on tokenizing physical bullion rather than offering price-exposure derivatives.
Tether’s XAUt token, backed one-to-one by a troy ounce of gold held in Swiss vaults, recently received Shariah certification from Amanah Advisors, a move targeting adoption among Islamic financial institutions. Earlier this month, ADGM separately recognised XAUt as an accepted spot commodity, opening the door for regulated firms in Abu Dhabi to offer services tied to the tokenized gold asset. According to RWA.xyz, the tokenized commodities sector has reached approximately $4.56 billion in distributed value, with Tether Gold and Paxos Gold together commanding more than 90% of that market.
ADGM as a regulated hub
Abu Dhabi Global Market has emerged as a key jurisdiction for crypto firms seeking regulated frameworks for both digital and traditional asset products. Binance’s use of Nest Exchange Limited as the listing venue underscores the exchange’s strategy of channelling regulated commodity products through its ADGM-licenced entity rather than its primary international platform.
The dual-track structure, where retail buyers face limited downside and institutional writers take on premium-collection risk, mirrors structures common in traditional options markets and is designed to satisfy the RIE’s investor-protection requirements.
