Key facts
- Franklin Templeton believes agentic AI will be the 'killer use case' driving blockchain adoption.
- Agentic AI requires autonomous transactions and micropayments, which legacy payment networks cannot efficiently support.
- Blockchains offer faster settlement and programmability, making them suitable for AI agent transactions.
- The firm suggests investing in cryptocurrencies like Solana and Ethereum to capture value from the AI revolution.
- AI agents are projected to account for a significant portion of e-commerce sales by 2030.
Franklin Templeton argues that agentic artificial intelligence, which can act, pay, and decide autonomously on behalf of users, will drive significant adoption of blockchain technology. Sandy Kaul, the firm's Head of Digital Assets and Innovation, stated that legacy payment networks are not equipped to handle the high volume and speed of micropayments required by these AI agents.
Instead, Kaul believes that blockchains, particularly high-speed networks like Aptos, Solana, and BNB Chain, offer the necessary programmability, identity features, and rapid settlement times. This 'speed gap' advantage makes them ideal for machine-to-machine transactions, a stark contrast to the multi-day settlement times of traditional systems like Visa.
Kaul's perspective aligns with that of Circle CEO Jeremy Allaire, who sees AI and blockchain converging to create an autonomous system for value exchange. As AI agents become capable of executing tasks such as shopping, booking, and paying, they will increasingly engage in economic transactions, potentially driving demand for the native cryptocurrencies of these blockchain networks.
Franklin Templeton suggests that investors looking to capitalize on the AI revolution should consider investing in the underlying cryptocurrencies of these decentralized networks, rather than solely focusing on AI software companies. Projections indicate that AI agents could account for 15% to 25% of U.S. e-commerce sales by 2030, with agentic commerce potentially reaching $3 trillion to $5 trillion by the same year.