Forget Nvidia: The next big AI trade could be crypto and blockchain

Franklin Templeton's head of digital assets and innovation, Sandy Kaul, has suggested that blockchain networks and cryptocurrencies may become a key investment theme as artificial intelligence (AI) evolves. Specifically, Kaul highlights the emergence of agentic AI, which can autonomously carry out complex tasks with minimal human input, such as booking travel or managing software workflows. As these AI agents increasingly transact with each other, they will require payment systems capable of handling a large volume of microtransactions, potentially worth fractions of a cent – something traditional financial networks are not well suited for.

Kaul argues that blockchain technology, with its programmable transactions, cryptographic identities, and near-instant settlement, is better equipped to enable these machine-to-machine micropayments than conventional payment rails that involve banks or card networks. In this scenario, AI agents could hold digital assets and pay one another directly using native cryptocurrencies on public blockchains, potentially increasing demand for blockchain tokens and generating revenue to support network security, developer incentives, and decentralized applications.

This perspective aligns with Circle CEO Jeremy Allaire’s broader vision that AI and blockchain technologies are converging to form a unified economic system. Allaire has posited that as AI drives down the cost of knowledge work and blockchain lowers the cost of payments and coordination, AI agents will function as independent economic actors capable of buying services, hiring other agents, and exchanging value autonomously. He also foresees AI-native businesses operating on-chain, using tokens for governance and ownership, and shifting software pricing to pay-per-task models in which AI agents are both consumers and providers of services.

For investors, Kaul sees potential beyond the current focus on chipmakers and cloud providers that support AI infrastructure. If agentic AI becomes a significant economic force, blockchain networks and the cryptocurrencies powering these ecosystems could offer alternative exposure to the evolving AI-driven economy. This emerging intersection of AI and blockchain is thus presented as a possible “next big trade” that goes beyond the traditional tech companies dominating current AI investment themes.