Binance is preparing to launch crypto options trading later this year

Binance, one of the largest crypto exchanges, is reportedly preparing to launch crypto options contracts. While the team did not confirm, The Block reported the exchange has been meeting with relevant players to hopefully go live in late Q2 or early Q3. This move would expand their derivatives offering after they launched futures trading last fall. Since then Binance has become the fourth most active futures exchange by volume.

Why it matters

• Competition for the growing crypto derivatives market has been heating up recently. While Deribit has historically been the only relevant player, more crypto exchanges such as OKEx as well as regulated exchanges like CME and Bakkt have all begun offering options in the last few months. Despite the new entrants, Deribit still maintains 85% of aggregate open interest of bitcoin options, however, that is down from 91% at the start of the year.