Franklin Templeton says AI agents will drive blockchain payments
Franklin Templeton has identified autonomous AI agents as the next major crypto use case, arguing that legacy payment networks cannot handle the volume and speed of machine-to-machine transactions.
Autonomous artificial intelligence agents are the next "killer" use case for blockchain technology, according to Franklin Templeton’s head of digital assets and innovation, Sandy Kaul. The investment manager argues that as AI systems increasingly transact on their own behalf, the underlying financial infrastructure will be forced to adapt.
The core limitation lies in legacy card networks. Traditional rails were built for low-frequency human commerce, carrying high fees and requiring one to three business days to settle. However, an economy driven by autonomous AI agents requires constant, fractional machine-to-machine micropayments. Blockchain networks like Solana, Aptos, and BNB Chain are better suited to handle this volume, settling transactions in seconds.
This gap between legacy infrastructure and machine requirements is gaining broader industry recognition. A joint report published last Wednesday by Visa and investment thesis platform Artemis concluded that traditional cards are fundamentally insufficient for AI agents. To function commercially, these autonomous systems require infrastructure with near-zero fees and rapid settlement speeds.
Early market activity suggests major payment processors are already building the plumbing for this shift. In March, Visa’s crypto division and Stripe-backed Tempo both introduced AI payment tools, with Visa’s enabling same-day settlements. Data from the Visa and Artemis report indicates machine payment protocols are gaining traction. Coinbase’s x402 protocol has processed $15 million in adjusted volume across more than 109 million adjusted transactions since launching in May 2025.
For investors, the rise of agentic AI poses a strategic puzzle regarding how to capture the economic value of this transition. “To capture the AI growth opportunity today, most investors buy shares of AI-aligned companies and related verticals. But will the same playbook work for agentic AI,” Kaul wrote in an X post on Wednesday.
The implication for markets is a potential revaluation of blockchain networks. If machine-to-machine commerce scales as expected, crypto protocols could capture significant value as essential backend infrastructure. Financial professionals may need to evaluate whether these networks will ultimately extract more value from the agentic AI boom than the software companies currently dominating AI investment portfolios.
