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Industry

Why Franklin Templeton Thinks AI Could Boost Crypto Demand

The asset manager says autonomous AI systems will require programmable payment infrastructure, positioning blockchain networks for future machine-to-machine commerce.

Written By Isha Chavda
Edited by Shubham Soni
Published 1 hour ago
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Why Franklin Templeton Thinks AI Could Boost Crypto Demand

Key Highlights

  • Franklin Templeton published a report linking agentic AI to future blockchain adoption.
  • The firm argues AI agents may require crypto rails for autonomous payments and settlements.
  • It says cryptocurrencies could benefit as machine-to-machine transactions increase.

Franklin Templeton, an investment management firm, believes the next phase of artificial intelligence could create a new use case for cryptocurrencies, arguing that autonomous AI systems may eventually depend on blockchain networks to complete payments without human involvement.

In a report published on X on Wednesday, Sandy Kaul, the firm’s Head of Digital Assets and Innovation, argued that agentic AI could become a major catalyst for blockchain adoption as software agents begin executing financial transactions independently.

https://t.co/YTePOu0fUc

— Franklin Templeton Digital Assets (@FTDA_US) July 21, 2026

The report comes as financial institutions and payment companies increasingly explore infrastructure that allows AI systems to buy data, pay for computing resources, and complete transactions automatically.

Why AI needs blockchain? Franklin Templeton states

Franklin Templeton argued that artificial intelligence is moving beyond systems that simply generate content or respond to prompts. In its report, the firm described agentic AI as software capable of carrying out multi-step tasks autonomously, including interacting with external applications, executing transactions, and managing workflows with limited human involvement.

The report cited industry estimates suggesting AI agents could take on a growing share of enterprise software and e-commerce activity over the coming years.

According to Franklin Templeton, that shift would require payment infrastructure capable of supporting machine-to-machine transactions. The firm argued that traditional payment systems are not well suited for the high volume of programmable micropayments expected in an AI-driven economy, while blockchain networks can provide faster settlement, programmable payments, and digital identity verification.

The report also highlighted emerging payment standards such as Visa’s Machine Payments Protocol (MPP) and Coinbase’s x402 protocol, both of which are designed to facilitate software-to-software payments.

“Blockchain will be pivotal in allowing agentic AI to realize its potential,” the report stated.

What it means for crypto

Franklin Templeton argued that wider adoption of agentic AI could eventually increase demand for blockchain networks and their native cryptocurrencies. Because blockchain transactions require payment using network tokens, the report suggested increased AI activity could generate additional demand for digital assets that power those networks.

Rather than focusing exclusively on AI-related equities, the firm argued investors may eventually consider blockchain infrastructure as another way to gain exposure to the technology’s long-term growth.

More recently, OKX launched an AI Marketplace built around autonomous commerce. The platform combines AI agent identity with the newly finalized Agent Payments Protocol, allowing AI agents to negotiate agreements, execute transactions, and settle payments on-chain without direct human intervention.

The report stops short of making price predictions, instead presenting blockchain as infrastructure that could support autonomous digital commerce.

Debate continues around AI and blockchain

The report reflects a growing conversation across the AI and crypto industries about whether decentralized networks will become part of the infrastructure supporting autonomous software.

While payment companies and blockchain developers have begun building tools for machine-to-machine transactions, large-scale commercial adoption of agentic AI remains in its early stages.

Whether blockchain becomes the dominant settlement layer for AI-driven commerce remains uncertain, but Franklin Templeton argues the technology is well positioned if that transition takes place.

Also Read: Ansem Says Crypto’s Next Bull Run Could See Record Retail Demand

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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TAGGED:Artificial Intelligence (AI)BlockchainUnited States
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