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The cryptocurrency exchange announced it will be listing a new type of Bitcoin options that will allow traders to issue their own contracts for the first time.

According to a press release published on 28 December, the launch comes after a successful testnet trial carried out last month. The company said it optimized margin and risk control mechanisms of the new product based on the public feedback gathered during the trial.

The new European-style contracts got their “vanilla” moniker for being less “exotic” than the American-style options offered by Binance. Unlike the American-style contracts, the European-style options can only be exercised by the option holder at the contract’s expiration date.

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Binance said that the new product is a direct result of increased institutional demand for Bitcoin. The daily trading volume of Bitcoin options crossed $1 billion for the first time in December this year, a significant increase from the $180 million in maximum daily trading volume seen in the first quarter of the year. Institutional and advanced users requiring more hedging and liquidity products have turned to options, the company explained.

Users can both buy the options for hedging and trading, as well as write and sell the options as an issuer, the company said, adding that the contracts will be priced and settled in Tether (USDT).

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