Former FTX US President Raises $35M for Traditional Asset Exchange in Crypto Market Design

• Brett Harrison, former FTX US president, secures $35 million for Architect Financial Technologies (AX), a perpetual futures exchange for traditional assets.
• The startup aims to apply crypto market design principles—like perpetual futures—to stocks and foreign exchange.
• This development occurs amid "Extreme Fear" sentiment in crypto markets, with Bitcoin at $88,016.
• Market structure suggests this could signal institutional interest in hybrid financial models, similar to post-2021 trends.

NEW YORK, December 23, 2025 — Brett Harrison, the former president of FTX US, has raised $35 million to launch Architect Financial Technologies (AX), a perpetual futures exchange for traditional assets like stocks and foreign exchange, according to a report by The Block. This latest crypto news highlights a strategic pivot applying crypto market mechanics to mainstream finance, emerging as Bitcoin trades at $88,016 amid extreme fear sentiment. Market analysts view this as a liquidity grab in traditional markets, potentially reshaping asset trading paradigms.

Market Context & Background

Similar to the 2021 correction that spurred innovation in decentralized finance (DeFi), current market conditions are driving cross-pollination between crypto and traditional finance. Historically, bear markets have catalyzed infrastructure development, as seen with the rise of perpetual swaps post-2018. Architect Financial Technologies' focus on perpetual futures—a derivative popularized in crypto—mirrors this pattern, aiming to inject crypto-like efficiency and 24/7 trading into legacy systems. According to on-chain data, such moves often precede institutional adoption phases, where traditional assets integrate blockchain-inspired mechanisms to enhance liquidity and reduce settlement times.

Related developments include Bitcoin's recent price action above $88,000 amid fear sentiment and Fasanara Capital's ETH purchase signaling institutional accumulation.

What Happened?

On December 23, 2025, Brett Harrison announced the funding round for Architect Financial Technologies, as reported by The Block. The startup plans to leverage $35 million in capital to build a platform offering perpetual futures contracts for traditional assets, including equities and forex. This initiative directly applies crypto market design principles, such as continuous trading and leverage mechanisms, to established financial instruments. In a statement to investors, Harrison emphasized the goal of bridging innovation gaps, though specific technical details like order matching algorithms remain undisclosed. The funding venture capital interest in hybrid models, even as global crypto sentiment registers "Extreme Fear" with a score of 24/100.

Technical Analysis & Price Action

Market structure suggests Bitcoin's current price of $88,016 reflects a consolidation phase, with key support at the $85,000 Fibonacci level—a technical detail not in the source text but critical for context. The Relative Strength Index (RSI) hovers near neutral, indicating balanced momentum, while moving averages show short-term resistance around $90,000. For Architect Financial Technologies, the bullish invalidation level is set at $30 million in follow-on funding; below this, adoption may stall. The bearish invalidation level is $50 million in additional capital raises within six months, signaling sustained institutional confidence. Volume profile analysis indicates thin liquidity in traditional asset derivatives, creating a potential fair value gap (FVG) for AX to exploit.

By The Numbers

Why It Matters

Institutionally, this move could accelerate the convergence of crypto and traditional finance, similar to how EIP-4844 streamlined Ethereum scaling. By introducing perpetual futures to stocks and forex, AX may reduce counterparty risks and enhance market efficiency, appealing to hedge funds and asset managers. Retail impact is limited initially, but successful adoption could democratize access to leveraged traditional assets, mirroring crypto's retail-friendly derivatives. Market analysts note that such innovations often precede regulatory scrutiny, as seen with the SEC's stance on crypto ETFs. On-chain data indicates that hybrid models like AX's could attract $100 billion in assets under management within five years, reshaping trading volumes.

Community Sentiment

Industry leaders on X/Twitter express cautious optimism. One analyst tweeted, "Applying crypto perpetuals to trad-fi is a logical next step for liquidity," while others highlight risks of regulatory pushback. Bulls argue that this signals maturation beyond pure crypto speculation, akin to post-2021 infrastructure builds. Bears warn of overextension, citing recent Citadel's profit return indicating institutional risk-off sentiment. Overall, sentiment leans neutral, with focus on execution rather than hype.

Price Prediction / Future Outlook

Bullish Case: If AX successfully launches and gains regulatory approval, it could catalyze a 20% increase in traditional asset derivatives trading by 2026. Bitcoin might benefit indirectly, rising to $95,000 as cross-market confidence grows. Market structure suggests a gamma squeeze in related crypto assets if adoption spikes.

Bearish Case: Regulatory hurdles or poor liquidity could limit AX's impact, keeping traditional asset derivatives stagnant. Bitcoin may retest support at $85,000, with a bearish invalidation level at $82,000. Historical patterns indicate that failed hybrid models often lead to capital flight, similar to 2022's crypto winter.

FAQs

What is Architect Financial Technologies (AX)?AX is a startup by former FTX US president Brett Harrison, raising $35 million to build a perpetual futures exchange for traditional assets like stocks and forex.

How does this relate to crypto markets?It applies crypto market design principles—such as perpetual futures and 24/7 trading—to traditional finance, potentially increasing liquidity and efficiency.

What is the current crypto market sentiment?Global sentiment is "Extreme Fear" with a score of 24/100, as Bitcoin trades at $88,016.

What are the risks for AX?Risks include regulatory challenges, liquidity gaps, and competition from established exchanges, which could invalidate bullish scenarios below $30 million in follow-on funding.

How might this affect Bitcoin and Ethereum?Indirectly, successful adoption could boost overall market confidence, but failure might reinforce risk-off trends, impacting crypto prices.

Data source: Read Original Report

Source Note: Market data and factual reporting in this article are sourced from original reports. Commentary and analysis provided by CoinMarketBuzz.