Defying Regulatory Scrutiny, Ex-FTX US Head Launches Perpetual Futures Bridge to Traditional Finance

Brett Harrison, of FTX US, is launching a new platform that aims to bridge the gap between cryptocurrency and traditional finance by introducing perpetual futures contracts for stocks, commodities, and currencies. Architect Financial Technologies, his startup, has secured a Bermuda regulatory license to operate AX, a global exchange for these leveraged derivatives. The move marks a significant shift for Harrison, who previously oversaw FTX US's regulated operations before the broader FTX collapse in 2022, according to Bloomberg.

Perpetual futures, or "perps," allow traders to hold leveraged positions indefinitely without expiry, using a funding rate mechanism to align prices with underlying assets. These contracts, popularized by crypto exchanges like BitMEX and FTX, have driven explosive growth in derivatives trading, with monthly volumes surging to $6.4 trillion in 2025 from $35 billion in 2018. Architect's platform will extend this model to traditional assets, including equities, indices, and foreign currencies, targeting institutional clients.

The venture has attracted $17 million in Series A funding, with backers including Coinbase Ventures, Circle Ventures, and Anthony Scaramucci's SALT Fund, Bloomberg reported. Harrison's experience spans both crypto and traditional finance: he previously worked at Citadel Securities and Jane Street Group, where he collaborated with Sam Bankman-Fried at FTX US. The Bermuda Monetary Authority's oversight adds a layer of regulatory credibility, though the product's high-risk nature remains a concern.

Critics warn that perpetual futures can be destabilizing for inexperienced traders. Coincall's Fenni Kang highlighted the risks of margin overuse, noting that minor market movements could trigger cascading liquidations. Regulators, including the U.S. Commodity Futures Trading Commission (CFTC), have also raised alarms about inadequate safeguards in derivatives markets. FTX's collapse in 2022—driven by a liquidity crisis and opaque practices—underscores these risks, even as Architect emphasizes its adherence to Bermuda's stricter compliance standards.

Architect's launch comes amid a broader trend of crypto-native products entering traditional markets. Kraken, for example, recently expanded its U.S. futures offerings through an acquisition. However, Harrison's platform faces an uphill battle in gaining institutional adoption, given the lingering skepticism toward leveraged derivatives and the shadow of FTX's downfall.