Ripple Co-Founder Backs Senator’s Son in $300M Derivatives Exchange Bet

TLDR

• Chris Larsen invested in APEC, a derivatives exchange founded by Senator Kirsten Gillibrand’s son recently.
• APEC raised $30 million in a Lux Capital-led round at a $300 million valuation.
• The startup plans perpetual futures products linked to U.S. equities and equity market indices.
• Senator Gillibrand has said she has no involvement in her son’s derivatives exchange business.
• APEC is expected to seek CFTC approval before launching its planned perpetual futures products.

Ripple co-founder Chris Larsen has invested in American Perpetuals Exchange Corp., a derivatives exchange startup founded by Theodore Gillibrand, the son of U.S. Senator Kirsten Gillibrand.

The company, also known as APEC, raised $30 million in a funding round led by Lux Capital, reaching a reported valuation of $300 million as of June 18.

Larsen was named among roughly three dozen angel investors who contributed smaller checks to the venture, with reported contributions generally ranging from $5,000 to $10,000.

The investment has drawn attention because Senator Gillibrand has been involved in congressional discussions over crypto market structure legislation and ethics provisions.

APEC Raises $30 Million for Derivatives Platform

American Perpetuals Exchange plans to offer perpetual futures products tied to U.S. equities and equity indices. Perpetual futures allow traders to take positions on asset prices without fixed contract expiration dates.

The company was founded by Theodore Gillibrand, a recent Stanford University graduate and the 22-year-old son of Senator Kirsten Gillibrand. Reports named Chris Larsen, hedge fund manager John Griffin, Washington investor Mark Ein, and Anduril founder Palmer Luckey among the backers.

Lux Capital led the funding round, which gave APEC a reported $300 million valuation before the platform has begun full operations. A representative for Larsen confirmed his support for the organization, according to the supplied report.

Crypto Industry Money Enters Perps Venture

APEC’s planned products are tied to equities rather than digital assets, but the venture has attracted interest from crypto-linked investors. Perpetual futures remain widely used in offshore crypto markets, while U.S. access to similar products has been more limited.

The company is expected to seek approval from the Commodity Futures Trading Commission, which oversees derivatives markets in the United States. A regulated path for equity-linked perpetual futures could be watched by crypto firms seeking broader U.S. approval for similar market structures.

Larsen’s involvement is relatively small in financial terms, based on the reported angel investment range. Even so, his role has drawn attention because Ripple and other crypto companies have a stake in how U.S. digital asset and derivatives rules develop.

Gillibrand Connection Draws Political Scrutiny

Senator Gillibrand has said she has no involvement in her son’s business, according to the supplied report. She has previously supported bipartisan crypto legislation and has taken part in negotiations over ethics language connected to crypto market structure policy.

The connection between a lawmaker involved in crypto regulation and a family-linked derivatives startup backed by crypto investors may receive further review as APEC pursues regulatory clearance. The CFTC approval process will be central to whether the company can bring its planned perpetual futures products to market.

APEC’s fundraising also arrives while U.S. lawmakers continue debating how to divide oversight of digital assets and derivatives between regulators. For crypto market participants, the company’s path may be watched as part of a broader discussion about regulated perpetual futures in U.S. markets.

The reported investment does not show that Larsen or other backers will control APEC’s regulatory strategy. It does show that crypto industry capital continues to move into market infrastructure ventures that may intersect with future trading rules.

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