Circle cofounder raises $18M for AI-native banking startup Catena Labs

Circle cofounder Sean Neville’s new venture, Catena Labs, has raised $18 million to build an AI-native bank.

On May 20, Circle cofounder Sean Neville announced that his startup Catena Labs has raised $18 million in a seed funding round led by Andreessen Horowitz’s crypto division, as originally reported by Fortune. Other investors include Breyer Capital, Circle Ventures, Coinbase Ventures, and NFL legend Tom Brady. The funding deal included equity and token warrants—rights to a future crypto that the company has not yet released.

Neville, who cofounded Circle, the issuer of the second-biggest stablecoin by market cap USDC Coin (USDC), remains on the company’s board but left his operational role in early 2020. Since then, he’s been quietly working on Catena Labs, alongside cofounder Matt Venables, formerly a senior engineering executive at Circle.

Catena Labs grew out of a venture studio the two launched in 2021 to explore emerging technologies like artificial intelligence and decentralized identity. In 2023, following the rapid rise of AI apps like OpenAI’s ChatGPT, the team committed fully to building infrastructure tailored to AI-driven finance.

Catena Labs represents that commitment—a vision for an “AI-native bank” built for a future where financial transactions are increasingly managed by AI agents. According to Neville, Catena Labs is developing software that integrates AI with financial systems, focusing on payment automation and digital identity protocols.

Though the company hasn’t detailed a full product roadmap, it has built an open-source protocol for AI-powered payments and identity verification.

“You should be able to meet your financial advisor and your banker everywhere you want to be,” Neville told Fortune.

Neville explained that while the system may incorporate blockchain and stablecoins where useful, it won’t be defined by them.

The startup, which currently has a team of nine, remains in early stages, with no announced timeline for product release or token launch. Neville declined to disclose the company’s valuation.

The development of Catena Labs comes amid speculation that Circle, Neville’s former company, could be acquired by Coinbase, which co-founded USDC and remains deeply intertwined with Circle’s operations. While IPO plans are still active, Circle has reportedly engaged in informal sale talks and is seeking a $5 billion valuation.