Blockchain offers the speed and scalability missing in traditional finance
Artificial intelligence (AI) agents are increasingly being developed to perform tasks in the financial sector, but experts argue that legacy banking systems are too slow to support them effectively. According to Coinbase’s head of institutional strategy, John D’Agostino, AI agents require blockchain and crypto infrastructure to operate at scale, as traditional rails were never designed for real-time, machine-to-machine transactions.
“Artificial intelligence is infinitely scalable intelligence, and if you think of blockchain, which is the underlying technology for crypto, as an infinitely scalable source of truth, then those two things work very well together,” D’Agostino said in a recent interview.
He emphasized that AI agents must operate on “true sources of information” because inaccurate data could lead to disastrous financial decisions. Unlike outdated banking systems, blockchain enables fast, borderless, and transparent transactions — qualities essential for AI-driven financial activity.
D’Agostino compared the situation to technology adoption in the internet era: “You wouldn’t try to stream a movie on a dial-up modem. You wouldn’t ask these AI agents to transact with a financial system that’s older than those modems.”
Bitcoin vs. Traditional Assets
The discussion also touched on Bitcoin’s role as a modern financial asset. While gold has historically been viewed as a store of value, Bitcoin offers advantages that gold cannot match. “It’s programmable, digital, easy to move across borders, and produces a yield,” D’Agostino explained.
He noted that investors looking to hedge against inflation may increasingly turn to Bitcoin. With global money supply expanding by 7–8% annually, assets that can outperform inflation are becoming more attractive.
Institutional Adoption Still Measured
Despite optimism about the long-term role of crypto, D’Agostino cautioned against expecting a sudden flood of institutional investment. “They’re not lemmings running over a cliff. They’re very cautious, very thoughtful,” he said, referring to pensions, endowments, and sovereign wealth funds.
As AI agents evolve, the financial industry faces a crucial inflection point. Legacy systems may not keep pace with autonomous machine-driven trading, but blockchain and crypto rails offer the speed and scalability needed. For many experts, the convergence of AI and crypto could define the next era of financial innovation.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.