Fidelity Digital Assets has released a report expressing concerns that artificial intelligence agents could generate high levels of digital activity while creating less value for public blockchains than some expect.
AI and Public Blockchain Demand in Question
Max Wadington, Senior Research Analyst at Fidelity Digital Assets, outlined six main risks to the emerging trend connecting AI and cryptocurrencies. He argued that large technology and fintech firms might capture significant digital activity by keeping AI agents inside their own closed platforms, limiting the demand for public blockchains.
Wadington suggested that centralized platforms provide advantages in areas such as speed, cost efficiency, streamlined user experience, and regulatory certainty.
He stated that if AI-driven software agents operate within private and centralized environments, rather than using decentralized networks, this would likely undercut expectations of strong demand for blockchain-based payments, identity protocols, and settlement solutions.
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AAPLHe contended that “centralized platforms could have an advantage in performance, costs, user experience and regulatory clarity” over public blockchains if AI use remains within closed systems.
Some blockchain projects, such as the XRP Ledger, are already preparing for a future in which AI agents require access to decentralized payments. The XRP Ledger has integrated the x402 payment standard, which allows AI agents to pay for services using XRP and RLUSD.
Mini dictionary: x402 payment standard, a protocol developed to facilitate payments between machines, especially autonomous software agents, enabling settlement using digital assets like XRP and RLUSD across various platforms.
Competing Views: Grayscale vs. Fidelity
Fidelity’s cautious view stands in contrast to Grayscale, a major digital asset investment firm. Grayscale’s Head of Research, Zach Pandl, has pointed to networks including Ethereum, Solana, Worldcoin, and Bittensor as likely beneficiaries of increasing AI adoption in blockchain-driven finance, verifiable records, and decentralized machine learning systems.
Proponents of the AI-crypto thesis believe that autonomous software agents will require programmable money and resilient, always-available digital infrastructure, something that traditional finance may not provide.
| Firm | Outlook on AI & Blockchain | Highlighted Networks |
|---|---|---|
| Fidelity Digital Assets | Cautious, warns on value capture risks | XRP Ledger, others |
| Grayscale | Bullish, sees strong benefit | Ethereum, Solana, Worldcoin, Bittensor |
Value Creation, Technical Risks, and Security Concerns
Fidelity did not dismiss the possibility of AI agents using public blockchains, but emphasized that increased on-chain activity may not directly translate to higher token values. The report noted that although stablecoin payment volumes could rise, the majority of revenue and value might be captured by stablecoin issuers and service providers rather than by the underlying blockchains.
The report also drew attention to the impact of AI on software development. By making code easier and cheaper to produce, AI could reduce technical distinctions between blockchain networks, placing more importance on factors such as liquidity, user distribution, security, and community trust.
Security risks remain significant, according to Fidelity. As AI lowers barriers to both writing new software and discovering vulnerabilities, the likelihood of attacks or exploits could increase. This creates a new set of risks for public blockchain networks.
The central issue identified is not whether AI agents will utilize blockchains, but how much economic benefit these public networks and their tokens will ultimately receive.
Fidelity concluded that while AI adoption could boost digital activity, the extent to which public blockchains capture meaningful value from that activity remains an open question.
