Sean Neville, co-founder of Circle and CEO of Catena Labs, is spearheading a groundbreaking initiative to create the world’s first AI-native financial institution. The project, which secured $18 million in funding led by Andreessen Horowitz (a16z) Crypto. It aims to revolutionize the financial landscape by building a regulated bank tailored specifically for the AI economy.
A Vision for the AI Economy
On May 20, Catena Labs announced its ambitious plan to develop a fully regulated financial institution. This institution tend to serve both AI agents and their human collaborators. According to Neville, this institution will be operated by AI workers under human oversight. It will incorporate AI-specific risk management and compliance frameworks.
Neville emphasized that traditional financial systems are ill-equipped to handle the rapid advancements of AI technology. He argued that current infrastructure is “slow, expensive, full of global friction, inflexible, and ill-suited to the new opportunities and risks of AI.”
The company envisions its AI-native bank as a solution to these challenges. This approach enables AI agents —as well as the businesses and consumers they serve—to transact safely and efficiently.
“That’s why we’re building an AI-native financial institution that will give AI agents, and the businesses and consumers they serve, the ability to transact safely and efficiently,” Neville added.
Traditional Financial Systems: A Barrier to AI Adoption
In its announcement, Catena Labs criticized conventional financial systems for being “resistant” to AI technology. The company highlighted that existing infrastructure is unprepared to support the burgeoning agent economy. In this economy, AI agents are becoming increasingly important economic participants.
Traditional systems, according to Catena Labs, are plagued by inefficiencies such as high costs, slow transaction speeds, and a lack of flexibility. These limitations hinder the growth of AI-driven business models and stifle innovation.
To address these shortcomings, Catena Labs is developing a financial institution that integrates seamlessly with AI workflows. It offers tools and protocols specifically designed for the needs of AI agents and their human counterparts.
The Role of Stablecoins in AI-Native Money
One of the key components of Catena Labs’ vision is the use of AI-native money, such as regulated stablecoins like USDC. The company believes that stablecoins empower AI agents with “superpowers.” These allow near-instant, low-cost, and global transactions.
“Using AI-native money, agents can unlock new business models and greater prosperity for humans and businesses,” Catena Labs wrote in its announcement.
By leveraging stablecoins, AI agents can facilitate transactions that are faster, cheaper, and more scalable than those conducted through traditional financial rails. This capability is essential for supporting the complex and dynamic nature of AI-driven commerce.
Introducing the Agent Commerce Kit (ACK)
In addition to the funding announcement, Catena Labs unveiled the Agent Commerce Kit (ACK), an open-source toolkit designed to provide verifiable agent identity. The ACK includes patterns, components, and emerging protocols. These serve as foundational building blocks for AI-native commerce.
The ACK reflects Catena Labs’ commitment to fostering innovation in the AI economy. It provides developers with tools to integrate AI agents into financial systems securely and efficiently.
