Circle co-founder to create ‘AI-native’ bank after $18M raise

Catena Labs, a company founded by Circle co-founder Sean Neville, is developing an AI-native financial institution. This project secured $18 million in funding from Andreessen Horowitz (a16z) Crypto, aiming to create a fully regulated system for the AI economy. The initiative addresses the perceived resistance of traditional financial systems to AI integration.

Catena Labs argues that current financial systems are ill-equipped to handle the rise of AI agents as powerful economic actors. These systems are characterized as slow, expensive, inflexible, and rife with global friction, hindering the growth of the agent economy. Neville highlights the impending dominance of AI agents in economic transactions, emphasizing the need for a financial infrastructure capable of supporting this shift.

Catena Labs’ solution is an AI-native financial institution designed for both AI agents and human collaboration. This institution will utilize AI-driven operations with human oversight, incorporating AI-specific risk management and compliance measures. While details remain scarce following Cointelegraph’s unsuccessful attempt to contact the company, the project’s ambition is clear.

A key component of Catena Labs’ strategy is the Agent Commerce Kit (ACK), an open-source toolset providing patterns, components, and protocols for verifiable agent identity. ACK serves as a foundational element in the development of their AI-native financial system.

Catena Labs highlights the synergy between AI agents and stablecoins, referring to stablecoins like USDC as “AI-native money.” The company believes that the near-instant, low-cost, and global transaction capabilities of regulated stablecoins are crucial for unlocking the full potential of AI agents in commerce. They posit that this integration will foster new business models and increased prosperity for both businesses and individuals. Further details about the specific functionalities and regulatory framework of the AI-native financial institution are yet to be released.