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- Catena Labs raised $18 million in seed funding, led by a16z Crypto.
- The startup aims to build the first fully AI-native bank.
- It plans to merge AI and blockchain technologies in financial services.
Catena Labs, a new cryptocurrency startup, has emerged with strong backing and a bold mission. Founded by Sean Neville, co-founder of Circle, the company recently secured $18 million in seed funding. The lead investor was a16z Crypto, with other major contributors including Breyer Capital, Circle Ventures, and Coinbase Ventures.
The firm aims to build a new kind of financial institution. Unlike banks, it won’t be operated by companies or individuals. In place of companies or individuals managing transactions, Catena Labs envisions an AI agent-led platform in the future.
These agents will speak, trade, and manage identities online, requiring no human interaction. Neville is an old hand at tech innovation, having historically identified trends just as they were cresting. In 2013, he co-founded Circle in crypto’s nascent stages.
The company eventually established itself as a market leader in stablecoins. Now, he shifts to artificial intelligence with Catena Labs, looking to revolutionize financial interactions in a machine agent-driven future.
Neville Steps Back from Circle to Explore AI
Since leaving his full-time position at Circle in 2020, Neville has spent time researching AI advances. He took one year to study what was taking shape in the industry. In 2021, he co-founded a venture studio along with Matt Venables, an ex-Engineering Executive at Circle.
They experimented with ideas such as decentralized identity and intelligent finance tools. By 2023, following the AI boom that was fueled by tools such as ChatGPT, Neville decided to go all-in on AI. He and his eight-person team began building the foundation for what he terms an “AI-native bank.”
The platform will enable AI agents to act on behalf of users, doing financial transactions and automatic payment execution. An open-source protocol has also been designed by Catena Labs.
The framework maps out how AI agents will deal with identities and process payments. The method may revolutionize the way individuals engage with banks, opening up that service to be more accessible and linked to digital lives.
Catena Labs Takes a Selective Approach to Blockchain
In spite of being supported by crypto investors, Catena Labs isn’t just about creating a new cryptocurrency. The company applies blockchain only where it provides benefit. Neville contends that stablecoins address some issues but not everything.
The company’s title, Catena, is derived from Latin, meaning “chain.” They envision integrating technologies such as AI and blockchain and not letting one overshadow the product. Token warrants were also distributed to equity investors, which suggests there may be a digital asset in the future.
Still, Neville hasn’t revealed information about token plans or the company’s valuation. With AI transforming businesses in every sector, Catena Labs is eager to be at the forefront to rethink banking from scratch. This path can propel the financial industry into an era where it’s not humans, but machines, that lead the flow of money.
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