Ex-FTX exec to launch crypto-style perps trading for stocks, commodities

Former FTX US president Brett Harrison is making a comeback, and this time around, he is planning on introducing perpetual futures contracts, also known as “perps,” one of crypto’s most volatile trading instruments, into the world of traditional finance. He’s doing this through his software startup, Architect Financial Technologies.

Architect’s new exchange, known as AX, will operate out of a regulated entity licensed by the Bermuda Monetary Authority.

Traders will be able to post collateral in both traditional fiat currency and dollar-pegged stablecoins, allowing transactions to proceed even when the conventional banking system is closed. 

“It’s the perfect time to bring this type of innovation to traditional assets,” Harrison reportedly said.

Ex-FTX exec brings perpetuals for the mainstream

Perpetual futures have long been a defining feature of cryptocurrency markets, powering much of the speculative trading that fuels the sector’s volatility. Harrison’s Architect plans to offer contracts linked to foreign exchange, single stocks, and global stock indexes, as well as commodities ranging from metals to energy, among others. 

Over time, Harrison says, Architect intends to expand into emerging asset classes, including rare earth metals, renewable energy inputs, and even data center compute costs, all of which are critical to the rise of artificial intelligence infrastructure.

“The market structure resembles that of modern derivative assets, but it’s for traditional asset classes,” he said.

However, regulatory and operational hurdles remain in many jurisdictions, including the United States, where regulators such as the Commodity Futures Trading Commission (CFTC) haven’t authorized perpetual futures for either crypto or traditional markets. 

This challenge is part of what informed Harrison’s decision to launch through Bermuda, a jurisdiction known for its digital-asset-friendly framework. 

Architect juggles innovation and regulation

Architect’s launch coincides with a renewed policy debate in Washington over the future of digital-asset derivatives.

Some market operators, including Cboe Global Markets Inc., have already announced plans to list “long-dated” versions of perpetual Bitcoin and Ether futures in the U.S. pending approval.

Harrison’s push into the space may therefore prove timely, as it’s taking a bet on changing regulatory attitudes and testing to find if crypto-style innovation can safely migrate into mainstream finance. 

The use of stablecoins as collateral is particularly noteworthy, as it allows investors to trade outside the constraints of banking hours.

Architect’s operations in Bermuda will be handled through its local affiliate, Architect Bermuda Ltd. The firm is currently raising funds in a Series A round, having already secured about $17 million from investors like Coinbase Ventures, Circle Ventures, and Anthony Scaramucci’s SALT Fund, among others.

From FTX to Architect

For Harrison, Architect represents both a professional reinvention and a return to his roots in quantitative finance. Before his 17-month tenure at FTX US, Harrison spent time at Citadel Securities and Jane Street Group, where he first worked alongside Sam Bankman-Fried. 

He resigned from FTX US in September 2022, weeks before the company’s collapse, citing differences in management style. In the aftermath, he launched Architect Financial Technologies to build institutional-grade software for trading firms, exchanges, and brokers.

That background puts Harrison in a unique position, as he has played on all intersecting sides of his new venture. He also understands firsthand what happens when markets don’t play by the rules and the impact it can have on investors and businesses, like in the case of the FTX crash and its ripple effect in the crypto industry. 

That memory of FTX still looms large, and Architect’s success may hinge on restoring trust and demonstrating that crypto-inspired market structures can operate transparently and prudently within established oversight frameworks.