Coinbase Exec: AI Agents Need Crypto to Compete in Financial Markets
AI and Blockchain: A Natural Fit for the Future of Finance
Artificial intelligence (AI) agents will require cryptocurrency and blockchain infrastructure to operate effectively in global financial markets, according to Coinbase’s head of institutional strategy, John D’Agostino.
Speaking on CNBC’s Squawk Box, D’Agostino compared the current financial system to “streaming on a dial-up modem,” arguing that outdated infrastructure cannot support the speed and scalability AI agents demand.
“Artificial intelligence is infinitely scalable intelligence,” he explained. “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.”
AI-driven agents are already active in Web3, launching tokens, developing decentralized applications, and executing autonomous transactions. Some platforms are even experimenting with AI-powered trading.
Why AI Agents Need Faster Money Rails
Traditional banking systems were not designed for machine-to-machine transactions at scale, D’Agostino noted.
“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,” he said.
To fully unlock AI’s potential, he argued, the financial backbone must evolve to “infinitely fast and scalable money rails” – a capability blockchain and cryptocurrencies provide.
Bitcoin vs. Gold: An Unequal Comparison
On the frequently debated question of Bitcoin (BTC) versus gold, D’Agostino said the comparison is misplaced.
“Bitcoin is programmable. It’s digital. It’s infinitely scalable in terms of movement. Easy to move. You don’t have to lug it across borders, and it produces a yield,” he stated.
For investors concerned about inflation and money supply growth, he believes Bitcoin offers unique advantages over traditional safe-haven assets.
D’Agostino added that U.S. monetary policy could further boost Bitcoin demand. With trillions parked in money markets during the 5% interest rate era, falling rates could redirect a portion of that capital into BTC and other digital assets.
Institutional Adoption: A Gradual Process
Despite frequent speculation about a looming “institutional wave” of crypto adoption, D’Agostino cautioned against expecting sudden large-scale moves from pensions, endowments, and sovereign wealth funds.
“Institutions are not lemmings running over a cliff in some giant wave. They’re very cautious. They’re very thoughtful,” he said.
While institutional participation is increasing, he expects a slow and measured approach rather than a dramatic overnight surge.
