Brett Harrison, former FTX US president, is launching Architect’s AX exchange in Bermuda to bring perpetual futures contracts to traditional finance, allowing trading in forex, stocks, indexes, and commodities using fiat or stablecoins as collateral for 24/7 access.
-
AX exchange operates under Bermuda Monetary Authority regulation, bridging crypto innovation with traditional assets.
-
Traders can use stablecoins for collateral, enabling operations beyond traditional banking hours.
-
Architect has raised $17 million from investors including Coinbase Ventures and Circle Ventures, targeting expansion into AI-related assets like rare earth metals.
Discover how Brett Harrison’s Architect AX introduces perpetual futures in traditional finance, revolutionizing trading with stablecoin collateral. Explore regulatory insights and future expansions—stay ahead in crypto and finance integration today.
What is Architect’s AX Exchange and Its Role in Perpetual Futures?
Architect’s AX exchange is a new trading platform developed by Architect Financial Technologies, led by former FTX US president Brett Harrison, designed to introduce perpetual futures contracts to traditional asset classes. These contracts, known as “perps,” allow indefinite trading without expiration dates, a feature popularized in cryptocurrency markets but now extending to forex, stocks, indexes, and commodities. Operating from a Bermuda Monetary Authority-licensed entity, AX enables 24/7 trading with collateral in fiat currency or dollar-pegged stablecoins, addressing limitations of conventional banking schedules.
This initiative marks a significant step in merging crypto’s high-volume, volatile trading mechanisms with established financial markets. Harrison’s background in quantitative finance at firms like Citadel Securities and Jane Street positions him to navigate these integrations effectively.
How Does Perpetual Futures Trading Work in Traditional Markets?
Perpetual futures in traditional finance function similarly to their crypto counterparts, where contracts track the price of underlying assets like foreign exchange pairs, individual stocks, or global indexes without a fixed settlement date. Funding rates periodically adjust positions to keep contract prices aligned with spot markets, preventing excessive divergence. For commodities such as metals or energy, this setup supports leveraged trading, amplifying both potential gains and risks.
According to Harrison, the structure mirrors modern derivatives but applies to conventional assets, fostering innovation. Data from the crypto sector shows perpetuals accounting for over 70% of derivatives volume on major exchanges, per reports from Chainalysis, suggesting substantial liquidity potential if adopted widely in traditional spaces. Expert analysts note that this could enhance market efficiency, though it demands robust risk management. Regulatory bodies like the CFTC in the U.S. have not yet approved such instruments for non-crypto use, highlighting ongoing compliance challenges. Architect’s Bermuda base leverages the jurisdiction’s progressive digital asset policies, established under the 2018 Digital Asset Business Act, to test these waters safely.
Expansion plans include emerging classes like rare earth metals vital for tech manufacturing, renewable energy resources, and even compute costs for data centers powering AI growth. Harrison emphasized in interviews that these assets represent untapped opportunities, with global demand for rare earths projected to rise 7% annually through 2030, based on U.S. Geological Survey data. This forward-thinking approach could position AX as a pioneer in linking traditional finance with cutting-edge sectors.
The platform’s collateral flexibility—accepting both fiat and stablecoins—mitigates issues like settlement delays during off-hours, a common pain point in legacy systems. This innovation draws from Harrison’s experience at FTX, where perpetuals drove billions in daily volume, but adapts it for regulated, transparent operations. Industry observers, including those from the Futures Industry Association, view this as a potential catalyst for broader adoption, provided interoperability with existing clearinghouses is achieved.
Frequently Asked Questions
What Regulatory Challenges Does Architect Face in Launching Perpetual Futures?
Architect’s AX exchange navigates a complex landscape, particularly in the U.S., where the CFTC has not authorized perpetual futures for traditional or crypto markets due to concerns over leverage and systemic risks. By basing in Bermuda, regulated by the Monetary Authority since 2019, Harrison avoids immediate hurdles while monitoring U.S. policy shifts, such as ongoing debates in Congress over digital asset frameworks. This setup ensures compliance with anti-money laundering standards and investor protections under Bermuda’s Class M licensing.
Why Choose Stablecoins as Collateral for Traditional Asset Trading?
Stablecoins provide seamless, 24/7 collateral options that bypass traditional banking closures, allowing uninterrupted trading in volatile markets like forex or commodities. Pegged to the dollar, they offer stability akin to fiat while enabling blockchain-based efficiency, reducing counterparty risks through smart contracts. This appeals to institutional traders seeking crypto’s speed without its price swings, as evidenced by over $130 billion in stablecoin market cap reported by CoinMarketCap in early 2025.
Key Takeaways
- Bridging Markets: Architect’s AX introduces crypto-style perpetual futures to traditional assets, potentially increasing liquidity and accessibility for global traders.
- Regulatory Strategy: Launching in Bermuda circumvents U.S. restrictions, with funding from Coinbase Ventures and others totaling $17 million to fuel compliant growth.
- Future Expansions: Plans to include AI-linked assets like rare earth metals highlight innovation, urging investors to watch for policy changes that could accelerate mainstream adoption.
Conclusion
Brett Harrison’s Architect AX exchange represents a pivotal advancement in integrating perpetual futures in traditional finance, offering regulated access to diverse assets via fiat and stablecoin collateral. With Harrison’s expertise from Citadel and FTX, and Bermuda’s supportive environment, this venture addresses key pain points in market timing and innovation. As regulatory attitudes evolve—evidenced by Cboe’s pending Bitcoin futures listings—the platform could redefine derivatives trading, encouraging institutions to explore these hybrid models for enhanced efficiency and opportunity.
