Binance launches regulated gold, silver options in Abu Dhabi

Binance will launch USDT-settled options on gold and silver through its Abu Dhabi-regulated exchange, expanding its lineup of traditional financial products alongside cryptocurrencies.

The contracts will be listed through Nest Exchange Limited, Binance’s Abu Dhabi Global Market-regulated Recognized Investment Exchange (ADGM). The options allow traders to gain exposure to movements in gold and silver prices without taking delivery of the underlying metals. 

Retail users will only be able to buy options, while eligible institutional users and liquidity providers can also write contracts. According to Binance, restricting retail users to buying options limits downside risk to the premium paid, while eligible institutional participants can write options to collect premiums.

The launch builds on Binance’s gold and silver perpetual futures, introduced in January, as the exchange expands regulated access to traditional assets through crypto-native trading products.

Related: Goldman Sachs cuts year-end gold target by $500, doubting rate cuts

Crypto firms expand commodity offerings

Binance’s new options add to a growing range of commodity-linked crypto products. While the exchange is offering derivatives tied to gold and silver prices, companies such as Tether and Paxos have focused on tokenizing physical bullion.

Tether’s XAUt, which represents one troy ounce of gold stored in Swiss vaults, recently received Shariah certification from Amanah Advisors, a move aimed at expanding adoption among Islamic financial institutions.

Earlier this month, ADGM also recognized XAUt as an accepted spot commodity, allowing regulated firms to offer services tied to the tokenized gold asset.

According to RWA.xyz, the tokenized commodities sector has grown to about $4.56 billion in distributed value, with Tether Gold and Paxos Gold accounting for more than 90% of the market.

Tokenized commodities. Source: RWA.xyz

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