Artificial intelligence will need cryptocurrency rails — not traditional finance infrastructure — to function effectively in global markets, according to Coinbase’s head of institutional strategy, John D’Agostino.
Speaking on CNBC’s Squawk Box on Tuesday, D’Agostino argued that expecting AI-driven financial agents to operate on outdated systems would be as impractical as “trying to stream a movie on a dial-up modem.”
Earlier coverage: Coinbase CEO Brian Armstrong: Crypto Market Structure Bill Is a “Freight Train” Gaining Bipartisan Momentum
“Artificial intelligence is infinitely scalable intelligence,” he said. “And if you think of blockchain — the underlying technology for crypto — as an infinitely scalable source of truth, then those two things work very well together.”
Coinbase’s John D’Agostino believes AI agents require crypto to operate effectively in financial markets. Source: CNBC
AI agents are already becoming commonplace across crypto and Web3, where they help launch tokens, build decentralized apps, and autonomously interact with protocols. Some firms are even experimenting with AI agents in algorithmic trading.
Why AI Needs Crypto-Speed Money
D’Agostino stressed that legacy financial rails, some dating back a century, were never designed for real-time, machine-to-machine transactions.
“If we’re going to move to a world where agents operate at infinitely fast speeds, they need infinitely fast and scalable money rails. That’s what blockchain and crypto is,” he explained.
By contrast, relying on outdated systems would break scalability. “You wouldn’t ask AI agents to transact with a financial system older than dial-up modems,” he added.
Beyond Bitcoin vs. Gold
While Bitcoin’s performance is often compared to gold, D’Agostino believes the two assets are fundamentally different.
“Bitcoin is programmable, digital, infinitely scalable in movement, and easy to transfer across borders,” he said. “It produces yield and doesn’t carry the same logistical burdens as gold.”
He also noted that trillions of dollars parked in money market funds could shift into assets like Bitcoin as US interest rates fall. “Not all of it will go to Bitcoin, but a portion will,” he said.
Institutional Adoption Will Be Slow and Steady
Despite growing attention on institutional crypto adoption, D’Agostino warned against expecting a sudden surge.
“Institutional investors don’t move in waves. They’re not lemmings running off a cliff,” he said. “They’re very cautious, very thoughtful. Adoption is happening, but it’s not overnight.”