AI could drive crypto activity without driving token value, Fidelity says

The intersection of AI and crypto is gaining momentum around autonomous agents that can independently transact, purchase data and computing resources, and interact with financial infrastructure. Major payment companies including Coinbase, Stripe and Visa are building infrastructure for machine-to-machine payments.

This growth could create a paradox for crypto investors, according to Fidelity Digital Assets. In a recent report, the firm argues that AI may dramatically increase blockchain activity without increasing the value captured by blockchain tokens, in particular, if agents use low-fee payment rails, layer 2 networks, off-chain settlement or competing infrastructure operated by banks and fintechs.

As AI lowers the cost of building crypto applications, Fidelity says competitive advantages could increasingly move away from technology and toward liquidity, distribution, security, trust and regulatory integration. This could favor established networks and regulated or permissioned platforms, while stablecoin issuers and payment providers could benefit more directly from the growth of AI-driven payments.

Security is another major concern. More capable AI systems can identify and potentially exploit weaknesses across smart contracts and surrounding infrastructure, increasing the importance of security and compliance.