Traditional systems can't handle AI agents in financial markets, Coinbase exec

Coinbase’s head of institutional strategy, John D’Agostino, says artificial intelligence agents need cryptocurrency and blockchain to function effectively in financial markets, comparing traditional finance to streaming movies over a dial-up modem.

Coinbase’s official said that traditional financial systems cannot handle real-time, machine-to-machine transactions, so blockchain and cryptocurrency are better suited for AI agents in financial markets.

Coinbase connects AI growth with crypto use

D’Agostino explained that developers are now using AI agents to build tokens and Web3 applications. The AI agents can connect with other digital services and blockchain protocols without human intervention. Some companies have even started using them to trade, and D’Agostino wants to make it clear that the movement will continue to grow because technology is evolving rapidly.

The Coinbase executive also stated that AI agents require “true sources of information” to be safe, as they rely on data. Incorrect, incomplete, or outdated data can lead to misleading decisions that risk significant problems in financial markets. 

D’Agostino stated that AI agents make thousands of decisions in seconds and won’t pause to double-check numbers or question whether the information appears correct before taking action, unlike humans. In this case, a single mistake in the data could spread across the entire system and cause big risks never seen before in traditional markets. His solution is blockchain because it functions like a permanent, public record that everyone can see, and no one can secretly alter. 

To illustrate the connection between AI and blockchain, D’Agostino explained that AI represents “infinitely scalable intelligence.” This means that it learns, processes, and applies information without the limitations of humans, as long as we continue to feed it information.

On the other hand, he called blockchain an “infinitely scalable source of truth” because it grows by adding more transactions and records, while still maintaining those records as correct, secure, and visible to everyone.

Together, D’Agostino said AI can work with maximum speed and intelligence while blockchain ensures that the information being used is completely reliable and free from manipulation. This partnership will make financial markets faster, more transparent, and more efficient than ever before. 

The head of institutional strategy at Coinbase also warned that the speed and scale at which AI agents operate can become dangerous in financial markets without a trusted system, such as blockchain, to verify the data they use.

Institutions adopt crypto with slow and careful steps

John D’Agostino said that the financial systems we have today stand on very old foundations (financial rails) developed decades ago. These old systems cannot handle the new type of activity that AI agents will bring into the markets.

AI agents require systems that enable them to complete actions instantly and smoothly, as they are machines that operate continuously. D’Agostino said we would waste their speed and power if we force them to use outdated financial systems. For this reason, crypto and blockchain are better solutions. 

He also discussed how people compare Bitcoin with gold, calling the token “digital gold” because both are rare. According to John, people don’t realize how more powerful Bitcoin is because it is digital, programmable, and easy to move across the world through the internet. At the same time, gold is a physical, heavy, and limited commodity. 

D’Agostino also said large institutions, such as pension funds, university endowments, and sovereign wealth funds, will adopt crypto carefully and not carelessly. This is because they handle very large amounts of money belonging to others, and they can’t afford to take extreme risks without being 100% certain. 

The Coinbase official explained how these institutions will first invest small amounts, observe how the markets behave, and then gradually increase their exposure over time if things proceed well. John said this slow adoption makes the growth of crypto markets more stable and less likely to collapse under pressure. 

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