Former FTX US head raises $5M from Coinbase, Circle to build out new crypto venture

Brett Harrison, the former president of cryptocurrency exchange FTX's ( FTT-USD ) American division, has raised $5M from investors including crypto exchange Coinbase Ventures ( NASDAQ: COIN ) and stablecoin issuer Circle Ventures ( USDC-USD ) to develop his new crypto startup, called Architect, Bloomberg reported Friday. Architect seeks to create trading software tailored toward institutions trading in decentralized finance (DeFi), allowing people to potentially get their "confidence back in trading in this industry," said Harrison, who has been focused on the venture since leaving FTX US in September 2022, told Bloomberg in a recent interview. FTX filed for Chapter 11 protection on Nov. 11 in the face a liquidity crisis that sent shockwaves through the broader market and caused venture funding for crypto startups to plunge. Still, in December 2022, Harrison was said to have attempted to raise $6M at a $60M valuation. Other backers in the current round include Anthony Scaramucci, whose firm in September sold a 30% stake to FTX's venture capital unit, and SALT Fund, which is managed by his son, AJ Scaramucci. The product is expected to roll out in Q2, Harrison noted to Bloomberg , adding Architect's software could be at some point integrated into Coinbase ( COIN ) and Circle's ( USDC-USD ) platforms. Earlier in the crypto market, crypto-related stocks and crypto prices rallied despite the latest contagion effect from FTX's demise.