Donut Labs Raises $22M for AI Browser That Could Automate Crypto Trading

• Autonomous Trading: The browser researches markets, analyzes data, and executes trades without constant user input, enhancing efficiency in volatile crypto environments.

• Layered Security Model: Inspired by advanced autonomous systems, it processes actions on the backend to prevent prompt injections and safeguard private keys.

• Funding and Partnerships: Backed by $22 million from investors like Bitkraft Ventures and Sequoia China, with integrations from CoinGecko and Pyth for real-time data.

Explore Donut Labs’ AI-powered browser revolutionizing crypto trading with autonomous analysis and secure execution. Learn how this $22M-funded tool empowers traders—discover its features today for smarter decisions in DeFi.

What is Donut Labs’ AI-Powered Browser?

Donut Labs’ AI-powered browser is an innovative agentic tool designed specifically for cryptocurrency traders, allowing it to independently research markets, analyze data from multiple sources, and execute trades across exchanges. Developed by the New York-based startup, this browser aims to transform how users interact with the web in the crypto space by automating complex tasks while maintaining high security standards. Founded by Chris Zhu, the platform stems from frustrations with outdated browsing experiences and seeks to position AI as the primary interface for DeFi activities.

How Does the Donut Labs AI Browser Ensure Secure Autonomous Trading?

The Donut Labs AI browser incorporates a multi-layered security framework, modeled after systems in autonomous driving technologies, to handle everything from initial research to transaction confirmations. This approach minimizes risks like prompt injection attacks by processing all authorizations on a secure backend rather than simulating user interactions with HTML elements. According to Chris Zhu, founder and CEO, the system partners with key management providers like Turnkey to isolate private keys, ensuring the AI agent never accesses wallet balances directly. This setup allows users to authorize trades confidently, with multiple verification steps for high-stakes actions.

Real-time data integration plays a crucial role, pulling liquidity and pricing information from established sources such as CoinGecko and Pyth Network. Zhu explained in an interview with COINOTAG that the browser’s “open router” dynamically selects optimal AI models for tasks—using lightweight ones for simple token swaps and more advanced systems for in-depth market analysis. Early testing indicates this method reduces execution times by up to 40% compared to manual processes, based on internal benchmarks shared by the team. As crypto markets operate 24/7, this efficiency is vital for traders monitoring volatile assets like Bitcoin and Ethereum.

Expert analysts in the AI-blockchain intersection, including those from firms like Bitkraft Ventures, have praised the browser’s architecture for its proactive risk mitigation. One venture partner noted that Donut Labs’ focus on backend processing sets a new standard for agentic tools, preventing common vulnerabilities seen in general-purpose AI browsers. With funding from prominent investors such as Sequoia China, Sky9 Ventures, Matrix Partners, Makers Fund, and Altos Ventures, the company is scaling its infrastructure to support global user growth without compromising on data privacy standards compliant with regulations like GDPR.

Frequently Asked Questions

What Funding Did Donut Labs Secure for Its AI-Powered Browser Development?

Donut Labs raised $22 million through pre-seed and seed funding rounds, led by Bitkraft Ventures and including Sequoia China, Sky9 Ventures, Matrix Partners, Makers Fund, and Altos Ventures. This capital supports the creation of the first agentic AI browser dedicated to crypto, enabling autonomous trading features while advancing secure AI integration in decentralized markets.

Can Donut Labs’ AI Browser Replace Human Traders in Crypto Markets?

No, the Donut Labs AI browser is designed to augment human traders rather than replace them, providing contextual insights and automating routine tasks to enhance decision-making. As Chris Zhu stated, it equalizes access to advanced strategies by understanding a user’s full trading history and preferences, making complex analysis across the internet more accessible for everyday crypto enthusiasts.

Key Takeaways

• Revolutionary Autonomy: Donut Labs’ AI-powered browser handles market research and trade execution independently, streamlining crypto operations for users worldwide.
• Robust Security Layers: Backend processing and partnerships with key managers like Turnkey protect user assets, drawing from proven models in autonomous technologies.
• Future-Proof Expansion: Plans include standalone apps, extensions, and mobile versions, encouraging traders to integrate AI into their daily routines for long-term competitive edges.

Conclusion

In summary, Donut Labs’ AI-powered browser marks a pivotal advancement in how cryptocurrency traders engage with decentralized finance, offering secure autonomous analysis and execution capabilities backed by $22 million in strategic funding. By addressing longstanding limitations in web interfaces, it empowers users with tools that synthesize data from sources like CoinGecko while prioritizing security through innovative backend systems. As AI continues to evolve within crypto ecosystems, adopting such technologies will be essential for staying ahead—traders are encouraged to monitor Donut Labs’ upcoming product launches to leverage these transformative features in their portfolios.

The announcement from Donut Labs highlights a growing trend where AI browsers are reshaping online interactions, particularly in high-stakes environments like crypto trading. Chris Zhu’s vision, born from challenges with platform disruptions such as the shutdown of his team’s TikTok app, underscores the need for specialized tools. Traditional browsers, unchanged for decades, fall short in handling the dynamic nature of digital assets, prompting innovations like Donut’s agentic system.

Zhu’s insights reveal that the browser’s development was influenced by emerging AI tools from companies like OpenAI with its Atlas platform and Perplexity’s Comet, but tailored specifically for trading. This focus on crypto-specific challenges, including volatility and security, positions Donut Labs as a frontrunner. The funding round not only validates the concept but also accelerates the rollout of a comprehensive product suite, covering browsers, extensions, web apps, and mobile applications to support traders at every stage.

Security remains paramount, with the browser’s design preventing unauthorized access through isolated operations. Zhu emphasized that unlike other AI interfaces, Donut avoids granting agents direct control over wallets, instead using separate backends for all sensitive actions. This methodology, combined with dynamic AI model selection, ensures efficient performance—light tasks use efficient models, while complex ones engage advanced reasoning engines.

The human-AI synergy is a core philosophy. Quantitative traders excel in speed, but Donut’s browser adds contextual depth, personalizing strategies based on individual behaviors. Over time, Zhu envisions AI as an extension of the trader, enabling unique approaches that blend human intuition with machine precision. In a sector accustomed to automation, this browser could accelerate adoption, fostering rapid evolution in trading practices.

As the crypto landscape integrates more AI-driven solutions, Donut Labs exemplifies how startups can bridge technology gaps. Investors’ confidence, evidenced by the diverse funding syndicate, signals strong potential for widespread impact. Traders seeking efficiency gains should prepare for this shift, where browsers evolve from passive tools to active partners in financial success.