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Sean Neville, cofounder of Circle and a notable figure in the cryptocurrency world, has announced that his new venture, Catena Labs, has successfully raised $18 million in seed funding. The funding round, led by Andreessen Horowitz’s crypto division, also saw participation from prominent investors such as Breyer Capital, Circle Ventures, Coinbase Ventures, and NFL legend Tom Brady. The deal includes equity and token warrants, representing rights to a future cryptocurrency that the company plans to launch.

What Is Catena Labs?

Catena Labs, co-founded by Sean Neville and Matt Venables, aims to build an AI-native bank designed for a future where financial transactions are increasingly managed by artificial intelligence. While Neville remains on the board of Circle, the issuer of the stablecoin USDC, he stepped away from his operational role in 2020 to focus on new ventures. Since then, Neville and Venables, a former senior engineering executive at Circle, have been quietly developing Catena Labs.

The project originated from a venture studio launched in 2021 to explore emerging technologies like artificial intelligence and decentralized identity. In 2023, following the rapid adoption of AI applications such as OpenAI’s ChatGPT, the team shifted its focus entirely to building infrastructure for AI-driven financial systems.

Building the Future of AI-Driven Finance

Catena Labs envisions itself as a leader in creating financial tools that integrate AI with existing systems. The company is currently working on software that emphasizes payment automation and digital identity protocols. According to Neville, the goal is to enable seamless interactions between users and financial services, stating,

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

Although blockchain and stablecoins may play a role in Catena Labs’ infrastructure, Neville clarified that the platform will not be solely defined by these technologies. Instead, the focus will remain on leveraging AI to provide more efficient and intelligent financial solutions.

Open-Source Innovation

As part of its early developments, Catena Labs has already built an open-source protocol designed for AI-powered payments and identity verification. However, the company has yet to release a detailed product roadmap or announce a timeline for its first product launch. Additionally, while token issuance is on the horizon, specifics remain under wraps.

Team and Current Status

With a small but dedicated team of nine, Catena Labs remains in its early stages. The company has not disclosed its valuation, and Neville has kept further operational details private. Despite this, the significant interest from investors signals confidence in the startup’s vision and potential.

Circle’s Market Context and Speculation

The announcement of Catena Labs comes at a time when Neville’s former company, Circle, is also making headlines. Circle, the issuer behind USDC, has been the subject of speculation regarding a potential acquisition by Coinbase. While Circle continues to pursue its IPO plans, reports suggest that informal talks about a sale are ongoing, with the company seeking a valuation of $5 billion.

As the cryptocurrency and finance industries evolve, ventures like Catena Labs highlight the growing intersection of AI and blockchain technologies. With its focus on building an AI-native bank, Catena Labs could play a pivotal role in shaping the future of automated financial systems.

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