Circle Cofounder Sean Neville Launches Catena Labs, Raises $18M 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

Sean Neville, a co-founder of Circle, has announced that his startup Catena Labs has secured $18 million in seed funding. The investment, originally reported by Fortune, was led by Andreessen Horowitz's crypto division. Additional contributions came from Breyer Capital, Circle Ventures, Coinbase Ventures, and NFL star Tom Brady. The funding deal includes both equity and token warrants—rights to a future crypto from the company.

Neville, who also serves on Circle's board, left his operational role at the firm in early 2020. Since then, he has been working on Catena Labs in stealth mode with cofounder Matt Venables, formerly a senior engineering executive at Circle.

Catena Labs arose from a venture studio that Neville and Venables started in 2021 to research new technologies like AI and decentralized identity. For 2023, the team fully dedicated itself to building infrastructure optimized for AI-driven finance.

This startup represents that vision—an “AI-native bank” designed for a future where AI agents handle an increasing share of financial transactions. According to Neville, Catena Labs is developing software to integrate AI with financial systems, focusing on payment automation and digital identity protocols.

While the company hasn't disclosed a complete 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 clarified that while the system might utilize blockchain and stablecoins where relevant, it won't be fundamentally defined by them.

The startup, currently with a team of nine, is in the early stages of development, with no announced timeline for product release or token launch. Neville declined to share the company's valuation.

The formation of Catena Labs comes amid rumors of Circle being acquired by Coinbase, which co-founded USDC and remains closely linked to Circle's operations. Despite IPO plans, Circle has reportedly engaged in informal sale talks and is seeking a $5 billion valuation.