KEY FACTS: Catena Labs, a startup led by Circle co-founder Sean Neville, has raised $18 million in a seed funding round led by Andreessen Horowitz’s a16z Crypto, with participation from Breyer Capital, Circle Ventures, Coinbase Ventures, and Tom Brady, to build the world’s first AI-native financial institution. The company aims to create a regulated financial system tailored for AI agents, leveraging stablecoins for fast, low-cost transactions and incorporating AI-specific risk management and compliance under human oversight.
Source: Catena Labs
Catena Labs Secures $18 Million to Build the World’s First AI-Native Financial Institution
Catena Labs, a startup led by Circle co-founder Sean Neville, announced on May 20, 2025, that it has raised $18 million in a seed funding round to develop what it calls the “first AI-native financial institution.” The funding round, led by Andreessen Horowitz’s crypto and Web3 venture capital arm, a16z Crypto, marks a significant step toward reimagining financial systems for an AI-driven economy. Other prominent investors, including Breyer Capital, Circle Ventures, Coinbase Ventures, and even football legend Tom Brady, contributed to the round.
1/8 Big news from Catena Labs! We've secured $18M in funding, led by a16zcrypto, to build an AI-native financial institution. Why? Because traditional financial systems are unprepared and resistant to AI, hindering the growth of the agent economy.
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Catena Labs is positioning itself at the forefront of a transformative shift in how financial systems operate, particularly as AI agents become increasingly integral to economic activity. The company’s mission is to create a fully regulated financial institution tailored to the needs of AI agents and their human collaborators, with operations driven by AI digital workers under human oversight. This institution will incorporate AI-specific risk management and compliance frameworks, ensuring that it meets regulatory standards while enabling seamless transactions in an AI-driven world.
Sean Neville, CEO of Catena Labs and a co-founder of Circle emphasized the urgency of this initiative. “AI agents will soon conduct most economic transactions,” Neville stated, highlighting the limitations of traditional financial systems in accommodating the rapid rise of AI-driven commerce. He argues that legacy systems are “unprepared and resistant” to the demands of AI agents, which require instantaneous, low-cost, and secure transaction mechanisms to operate effectively. Catena Labs aims to bridge this gap by building a financial infrastructure that is purpose-built for the AI economy.
A cornerstone of Catena Labs’ approach is the integration of regulated stablecoins, which offer near-instant settlement, minimal transaction costs, and compatibility with AI workflows. Matt Venables, the company’s CTO and co-founder, elaborated on this strategy, noting that while Catena Labs will integrate existing payment networks as a transitional step, its focus is on transforming how money moves in the AI economy. Venables explained:
“We’re leveraging regulated stablecoins to enable fast, efficient, and secure transactions that align with the needs of AI agents and the businesses and consumers they serve,”
This emphasis on stablecoins builds on Neville’s prior experience with Circle, where he played a pivotal role in originating USDC, one of the world’s leading stablecoins. The use of stablecoins is particularly significant given their ability to facilitate rapid and cost-effective transactions, which are critical for AI agents that operate at scale and in real time. Embedding stablecoins into its financial infrastructure will help Catena Labs to reduce the friction that AI agents currently face when interacting with traditional financial systems, such as high fees, slow settlement times, and complex compliance requirements.
Catena Labs’ leadership team brings a wealth of experience in payments, fintech, AI, and regulated financial services, positioning the company to execute its ambitious vision. Sean Neville’s track record as a co-founder of Circle and a key figure in the development of USDC lends significant credibility to the project. The team’s expertise spans not only cryptocurrency and blockchain technology but also AI development and regulatory compliance, ensuring that Catena Labs can navigate the complex intersection of these fields.
The involvement of high-profile investors further underscores the confidence in Catena Labs’ potential. Andreessen Horowitz, known for its forward-thinking investments in crypto and Web3 technologies, led the funding round, signaling its belief in the transformative potential of AI-native financial systems. The participation of Breyer Capital, Circle Ventures, Coinbase Ventures, and notable individuals like Tom Brady adds a layer of mainstream appeal and financial backing to the project.
While Catena Labs’ vision is ambitious, the company has not yet disclosed specific details about its operational timeline or the exact structure of its AI-native financial institution. Cointelegraph reached out to Catena Labs for additional information but received no response before publication. Nevertheless, the $18 million funding round and the involvement of high-profile investors signal strong market confidence in the company’s potential to reshape the financial sector.
As AI continues to transform industries, from finance to healthcare to logistics, the need for financial systems that can keep pace with these changes is becoming increasingly urgent. Catena Labs’ AI-native financial institution represents a bold step toward addressing this need, with the potential to redefine how money moves in an AI-driven world. Leveraging stablecoins, open-source technology, and a team with deep expertise will give Catena Labs an edge to play a leading role in the next frontier of financial innovation.
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