New York Startup Donut Labs Raises $22 Million to Develop Agentic AI Browser for Crypto Traders
In a move that is set to revolutionize how people interact with the web, New York-based startup Donut Labs has announced that it has raised $22 million across pre-seed and seed rounds to develop what it claims is the first agentic AI browser that can research, analyze, and execute trades autonomously. The funding positions Donut Labs among the early players racing to redefine how AI and crypto merge.
According to the founder and CEO of Donut Labs, Chris Zhu, the idea for the Donut browser grew out of frustration with existing platforms after his team’s TikTok-based app was abruptly shut down. "Browsers haven’t really changed in 30 years," Zhu explained. "We wanted to build the largest front end on the internet—but do that for crypto." That experience led Zhu to a broader realization that if AI is becoming the interface for everything online, crypto needs a browser built for it.
"We saw signs that this agentic browser wave was starting—OpenAI launched Atlas, Perplexity has Comet," Zhu said, "and we wanted to create one that could actually handle trading." The funding has been led by top venture capital firms such as Bitkraft Ventures, Sequoia China, Sky9 Ventures, Matrix Partners, Makers Fund, and Altos Ventures.
Building the Agentic Browser
According to Zhu, Donut’s AI browser is designed to understand a user’s trading context, synthesize data from multiple sources, and perform actions across exchanges—all within the browser itself. The system is structured with layered security—modeled on the "levels" used in Tesla’s self-driving software. Tasks range from pure research to fully authorized transactions requiring multiple confirmations.
"The reason prompt injection happens in other browsers is because they handle HTML links with not enough security," Zhu explained. Donut processes authorizations on the backend rather than simulating user clicks, and partners with key management firm Turnkey to safeguard private keys.
"We actually don’t give the agent the ability to click into your other wallets," Zhu said. "Our wallet backend operates separately so the agent never sees your balances." Behind the scenes, Donut uses an "open router" that dynamically selects the right AI model for each task—from lightweight models for token swaps to advanced reasoning systems for complex analysis.
How It Works
The browser’s agents draw on liquidity and pricing data from sources like CoinGecko and Pyth, while custom-built tools allow automated execution and research. Zhu said the company plans to unveil a full suite of products—a standalone browser, extension, web app, and mobile app—to cover "the full life cycle of your trading career." The goal is not to replace human traders but to empower them with AI-enabled capabilities.
"AIs know your whole context," Zhu explained. "They make it easier for you to do what you already do, across the internet." This means that AI browsers can become a fundamental component of successful trading strategies. "Over a long enough time horizon," he said, "we do want to get to the point where it’s just me, myself, and my hundred quants. But the strategies will be unique to each person."
The Human Element
The integration of AI in crypto trading may raise concerns that human traders are becoming obsolete. However, Zhu countered that AI browsers actually level the playing field for amateur traders by making advanced analysis accessible to everyone. "Right now, quants are great at high-frequency trades," he said. "But AIs know your whole context—they make it easier for you to do what you already do, across the internet."
Conclusion
The rise of agentic AI browsers in crypto trading represents a significant shift towards automation and smart trading tools. As Donut Labs is positioned to become a leader in this emerging space, the implications on trading strategies, human skills, and financial markets are far-reaching and complex. With the vision to empower traders with AI-enabled capabilities, Zhu’s new browser project has sparked widespread interest among cryptocurrency enthusiasts, investors, and trading professionals worldwide.