Brett Harrison Spurs $35M Bet on Regulated Traditional-Asset Perps

Former FTX US President Raises $35 Million for Traditional-Asset Perpetuals Exchange

Brett Harrison, the former FTX US President, has secured $35 million in funding for Architect Financial Technologies, a startup building a regulated exchange for perpetual futures tied to traditional financial assets according to reports. The round, led by Miami International Holdings and Tioga Capital, values the firm at approximately $187 million according to the report. The exchange, AX, targets institutional investors in non-U.S. markets, operating under Bermuda regulation as U.S. approval for such products remains elusive according to data.

Perpetual futures, commonly known as "perps," have long been a staple of crypto markets but are now gaining traction in traditional asset classes. AX allows institutional traders to access non-expiring derivatives linked to equities and foreign exchange, leveraging crypto-style market design according to research.

The move reflects growing interest in synthetic exposure to macroeconomic and real-world assets without the need for direct custody according to market analysis.

Coinbase Ventures has highlighted perpetuals tied to real-world assets as a key area of focus for 2026, signaling a broader industry shift. Harrison, who led FTX US before stepping down in 2022, aims to adapt crypto infrastructure to regulated global finance through AX according to the report.

A New Frontier for Derivatives

AX operates under the Bermuda Monetary Authority and offers perpetual futures to institutional clients globally according to official sources. Unlike crypto-native exchanges, it does not list contracts tied to digital assets according to data. Instead, it focuses on traditional assets like equities and forex, leveraging the efficiency of crypto's perpetual structure according to industry analysis.

The U.S. has yet to approve such products for domestic traders, but global demand is rising. Harrison has positioned AX as a bridge between crypto innovation and traditional markets, aiming to bring efficiency and flexibility to institutional trading according to market reports.

Investor Interest and Market Dynamics

The $35 million funding round underscores investor confidence in the potential of traditional-asset perpetuals. Miami International Holdings and Tioga Capital led the effort, indicating a strategic bet on the growth of this niche market according to financial analysis. Architect's value proposition lies in its ability to offer hedging and speculative tools for macroeconomic factors without the complexities of direct asset ownership according to industry research.

The product structure allows traders to express views on markets without holding the underlying assets, a feature currently constrained by U.S. regulatory frameworks according to market analysis. As global markets continue to evolve, AX's regulated approach may position it as a key player in the next phase of derivatives innovation according to industry forecasts.

Risks to the Outlook

Regulatory uncertainty remains a major hurdle, particularly for U.S. traders. While AX operates under Bermuda regulation, gaining broader acceptance in global markets will require navigating diverse legal landscapes according to legal analysis. Additionally, the success of Architect's model hinges on demand for synthetic exposure to traditional assets, a market still in its early stages according to market research.

Analysts note that while the structure offers flexibility, it also introduces new risks, including liquidity challenges and execution inefficiencies. The firm will need to demonstrate consistent performance and strong compliance practices to attract and retain institutional clients according to industry experts.

What This Means for Investors

For investors, the rise of traditional-asset perpetuals presents new opportunities for hedging and speculation. The ability to gain exposure to equities and forex without direct custody could attract a range of market participants, from hedge funds to institutional traders according to market analysis.

However, the lack of U.S. approval means American investors remain excluded for now. As the industry pushes for broader adoption, companies like Architect may serve as testing grounds for regulatory acceptance and market viability according to industry reports.