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Baselayer Secures $35 Million to Enhance Identity Solutions for AI-Driven Commerce

In a significant move for the future of the financial technology landscape, Baselayer has successfully raised $35 million in Series A funding, led by notable venture capital firm M13. This round also saw the participation of Torch Capital, Picus Ventures, and Afore Capital, among others. The investment is aimed at bolstering Baselayer's unique position as a provider of identity and risk infrastructure, particularly as it relates to AI agents that are becoming increasingly pivotal in the realm of commerce.

The Challenge of Agentic Commerce

As financial institutions grapple with the rapid rise of agentic commerce, the need for a robust trust infrastructure has never been more pressing. According to a recent report from Stripe, about 70% of commands accessing data via its API now originate from AI agents. Major corporations like Visa, Mastercard, and American Express have already rolled out protocols for agent commerce, while Shopify has enabled these sales channels for nearly one million merchants.

This rapid evolution poses a unique challenge: the identity verification systems that have traditionally catered to businesses and individuals are ill-equipped to handle transactions initiated by autonomous software agents. Before allowing an agent to transact, entities need to ascertain who the agent represents, whether it is authorized to act, and if the counterpart is trustworthy.

Baselayer's Response

Baselayer has already established itself as a trusted solution for over 2,300 financial institutions, providing identity verification services that have helped prevent more than $1 billion in fraud losses. The company was founded in 2024 by machine learning expert Timothy Hyde and risk management professional Jonathan Awad, both of whom recognize the pressing need for infrastructure that meets the demands of the evolving agentic economy.

Jonathan Awad, co-founder and CEO, remarked, "Every era of commerce has required a new trust layer, but historically that infrastructure gets built only after fraud and abuse make the problem impossible to ignore. Agentic commerce is moving too fast for the industry to repeat that mistake." By launching its Agentic Identity Suite, Baselayer aims to provide this much-needed infrastructure, enabling financial institutions to answer whether they can trust an agent, who it represents, and what actions it’s authorized to take.

The Agentic Identity Suite

The newly introduced Agentic Identity Suite is designed to work in synergy with both agent builders and major financial institutions, including well-known payment networks. This suite lays the groundwork for agentic security solutions that can keep pace with the accelerating demands of businesses employing these intelligent agents.

In addition to developing products, Baselayer is actively collaborating on establishing industry standards essential for the agentic economy, alongside industry heavyweights like Cloudflare, Google, Visa, and others through groups like the FIDO Alliance Authentication Working Group and the x402 Identity Working Group.

Timothy Hyde, co-founder and CTO, pointed out the inadequacies of current verification systems: "Agents don't carry ID, and the existing infrastructure designed to verify humans and businesses simply doesn’t recognize them. Static fraud controls often block legitimate customers while sophisticated attacks slip through the cracks." The Agentic Identity Suite aims to identify agents correctly and verify their authority, thereby allowing institutions to proceed with transactions securely.

Looking Ahead

As AI agents increasingly act as economic players, the underlying identity infrastructure for commerce will need a significant overhaul to accommodate software capable of making decisions, moving money, and entering transactions autonomously. This transition represents a substantial trust challenge, and many experts, including Karl Alomar, Managing Partner at M13, believe that identity will emerge as a foundational layer in the agentic economy.

The momentum gathered by Baselayer is undeniable; the company already boasts a network of over 2,300 financial institutions, rich risk data, and proven infrastructure, positioning it well to become the go-to solution for organizations seeking reliable identity verification in an agent-driven marketplace.

For further information on Baselayer and their innovative products, visit their official website: baselayer.com.

About Baselayer

Baselayer is at the forefront of risk and identity infrastructure, serving more than 2,300 financial institutions and government agencies as they navigate the complexities of onboarding and managing interactions with businesses, consumers, and emerging AI agents.