Binance launches ADGM-regulated gold and silver options

The cryptocurrency exchange Binance has launched regulated options contracts for gold and silver, expanding its suite of commodity-linked financial products. The new derivatives, which began trading on July 29, are offered through the exchange's regulated entity in Abu Dhabi and are settled in the stablecoin USDT.

The European-style options, listed as XAU/USDT and XAG/USDT, provide traders with exposure to price movements in the precious metals without requiring physical delivery. Contracts feature one-day and one-week expirations, and trading follows the underlying commodity market hours, pausing during daily breaks, weekends, and certain holidays. To promote the launch, Binance is offering zero maker fees and a 0.02% taker fee until further notice.

A key feature of the product is a split in access between retail and institutional participants. Retail users are restricted to buying call or put options, capping their maximum loss at the premium paid for the contract and eliminating liquidation risk. Eligible institutional users and designated liquidity providers, however, are permitted to write, or sell, options, allowing them to collect premiums. Binance stated this structure...