The 22-year-old son of a prominent member of the Senate is set to launch a trading platform for a type of derivative that has gained traction among digital asset traders. Theodore Gillibrand, the son of Sen. Kirstin Gillibrand (D-N.Y.), has successfully raised $30 million in funding led by venture firm Lux Capital. Sources close to the matter, who wish to remain anonymous, indicate that the valuation of Theodore’s startup, named American Perpetuals Exchange Corporation (APEC), stands at $300 million.
APEC aims to specialize in perpetual futures, commonly referred to as “perps.” These contracts allow traders to speculate on the price of various assets without the necessity of holding the assets themselves. Unlike traditional futures contracts, perpetuals are unique in that they lack a predetermined expiration date.
According to a presentation filed with the Securities and Exchange Commission, the platform intends to seek a license from the Commodity Futures Trading Commission (CFTC) to offer perpetuals tied to equities and stock indices, deliberately steering clear of the cryptocurrency market.
A spokesperson for Lux Capital confirmed their role in leading the funding round, while Theodore expressed his vision for the company. “It is clear that the future of these markets is not in offshore and unregulated foreign entities but rather in a regulated and institutional American company,” he stated, reaffirming the importance of a compliant marketplace.
The popularity of perpetual futures has surged in recent months, expanding beyond the confines of digital asset exchanges into the wider financial sphere. The decentralized exchange Hyperliquid, which first focused on perpetuals, has emerged as one of the most profitable platforms in the crypto arena. Additionally, similar startups have attracted significant investment from top venture capitalists.
Perpetual futures gained notable attention during geopolitical events, such as the U.S.’s conflict with Iran, where traders utilized oil index perps on platforms like Hyperliquid while traditional exchanges remained closed.
Recently, these financial instruments have caught the eye of U.S. regulators. In a significant move earlier this year, the prediction market Kalshi became the first U.S. entity to introduce perpetual futures after receiving CFTC approval to offer Bitcoin contracts. CFTC Chairman Mike Selig remarked on this development, highlighting the potential for a regulated market segment within the U.S. for crypto assets.
Sen. Kirstin Gillibrand has positioned herself as a significant ally for the cryptocurrency sector, advocating for regulations surrounding digital assets. She was part of the legislative team behind the Genius Act, which provides a regulatory framework for stablecoins, a form of cryptocurrency anchored to traditional assets like the U.S. dollar.
Theodore Gillibrand, who graduated from Stanford University recently, has notable experience in the field, having previously held a fellowship at the venture capital firm Paradigm and an internship at Andreessen Horowitz, as detailed on his LinkedIn profile. The emergence of APEC could mark a significant development in the evolving landscape of derivatives trading in the U.S.
