Former FTX.US President Brett Harrison is in the process of launching a new cryptocurrency startup that would service institutional clients.
According to a Bloomberg News report, Harrison has raised $5 million from well-known industry investors, including Coinbase Ventures and Circle.
Harrison’s new company — dubbed Architects — will reportedly cater to institutional clients and provide them with access to both centralized and decentralized crypto markets.
In an interview with Bloomberg, Harrison said he hoped Architect would help institutions regain their faith in the crypto industry.
Harrison said that he had trouble securing funding for the venture, as the collapse of FTX caused venture funding in the crypto space to drop as much as 75% in the fourth quarter of the year. Harrison’s close connections to FTX also made it difficult to secure investments for Architects.
Earlier in January, it was reported that Harrison was seeking a $6 million investment at a $60 million valuation.
However, the former head of FTX.US didn’t disclose the current valuation of the company. Most of the funding will be used for recruitment, with Harrison noting that he hoped to hire his former FTX.US colleagues.
Architect’s product is expected to launch in the second quarter of the year. Harrison said that he hoped the software the company is developing would eventually be incorporated into Coinbase’s and Circle’s platforms.
Harrison’s platform was also backed by SV Angel, Third Kind Venture Capital, Motivate Venture Capital, as well as Anthony Scaramucci and SALT, a fund managed by his son AJ Scarammuci.
FTX’s investment arm acquired a 30% stake in Scaramucci’s SkyBridge Capital in September 2022. Harrison declined to comment on his talks and potential funding from other private investors.