Brett Harrison, the former President of FTX US, is launching a new venture aimed at introducing perpetual futures contracts, a popular trading instrument in the cryptocurrency space, to traditional finance. His startup, Architect Financial Technologies, has secured approval in Bermuda to offer these contracts tied to traditional assets such as stocks, indexes, commodities, foreign currencies, and interest rates.
Perpetual futures, often referred to as "perps," allow traders to establish leveraged long or short positions without the constraint of a contract expiry date. To ensure that the prices of these contracts remain aligned with their corresponding spot markets, exchanges employ a funding rate mechanism. This involves periodic payments exchanged between long and short position holders, which helps to balance market demand.
Perpetual futures gained significant traction, initially popularized by platforms like BitMEX and later by FTX, contributing to the substantial growth of crypto trading volumes. Monthly trading volumes for these instruments have seen a dramatic increase, soaring from $35 billion in 2018 to $6.4 trillion in 2025.
While the global FTX entity offered crypto perpetuals with leverage options up to 100 times, FTX US, where Harrison held the presidential role, operated as a distinct, regulated entity and did not provide such products. Despite these differences, both exchanges faced significant challenges, ultimately collapsing in November 2022 due to a severe liquidity crisis that revealed substantial financial shortfalls, leading to FTX's bankruptcy filing.
High Risk, High Scrutiny
Despite their widespread adoption and success, perpetual futures are widely considered high-risk derivatives. This classification has led to increased scrutiny from both financial analysts and regulatory bodies. Fenni Kang, an executive at Coincall, cautioned in May that for traders lacking experience, "perps can be a ticking time bomb."
In an interview with Cointelegraph, Kang highlighted that a common issue among traders is the overuse of margin. This practice means that even minor market fluctuations can result in devastating liquidations for traders.
The regulatory landscape for perpetual futures has also been a point of concern. In 2023, the U.S. Commodity Futures Trading Commission (CFTC) issued warnings regarding inadequate safeguards and settlement practices associated with these instruments.
Nevertheless, perpetual futures continue to be a fundamental component of cryptocurrency trading, with major platforms such as Binance, OKX, Bybit, and Bitget dominating the market.
