A16z: AI Agents and On-Chain Finance Set to Transform the Landscape

A16z crypto, the venture capital arm of Andreessen Horowitz, anticipates significant advancements in several cryptocurrency sectors by 2026. The firm highlighted key areas such as stablecoins, tokenization of real-world assets, banking infrastructure, AI agent authentication, privacy solutions, and prediction markets in its latest update. With stablecoins reportedly processing around $46 trillion in transactions last year, they have outpaced major payment platforms, yet the challenge of integrating digital currencies with traditional banking systems remains unresolved. Looking toward 2026, A16z noted that startups are developing crucial on- and off-ramps to link stablecoins to local payment networks, QR code payment systems, real-time settlement infrastructure, and merchant solutions. These innovations could facilitate new applications like instantaneous cross-border payroll and direct merchant acceptance without the need for bank accounts. The report also pointed out the escalating interest from banks, fintechs, and asset managers in digitizing traditional assets, although many tokenization initiatives still mirror existing financial frameworks. Additionally, the firm discussed synthetic instruments such as perpetual futures, emphasizing their potential for greater liquidity while raising questions around the precedence of 'perpification versus tokenization' as more assets transition on-chain. The issuance of stablecoins saw an uptrend in 2025, with A16z projecting an increase in on-chain credit products rather than off-chain tokens converted later. The firm criticized banks for relying on dated core systems, suggesting that innovations like stablecoins, tokenized deposits, and on-chain bonds could enable institutions to develop new offerings without completely overhauling legacy systems. A16z's report also discussed the future of automation, forecasting a shift toward intent-based systems and AI agents needing rapid payment solutions backed by programmable settlement tools. This evolution could transform value transfers into a core network function. Furthermore, the report indicated that broader access to wealth management tools would emerge through tokenized assets and DeFi integrations, allowing for more nimble portfolio management, especially for private market assets usually reserved for institutional players. On the topic of identity, A16z observed that non-human agents now surpass human employees in finance, asserting that cryptographically verified credentials—termed 'Know Your Agent'—would be essential for transactions. It noted the increasing role of AI in research and suggested that multi-agent workflows would require attribution and compensation mechanisms supported by blockchain technologies. The rise of AI agents is believed to disrupt the traditional economic model of the open web, prompting the need for real-time usage-based compensation systems, potentially through crypto micropayments. Regarding privacy, it mentioned that chains integrating built-in confidentiality could strengthen network effects, as transitioning between private and public settings risks metadata exposure. The firm also anticipated a surge in decentralized, quantum-proof messaging networks and characterized 'secrets-as-a-service' as a necessary framework for enforcing data access rules on-chain. Lastly, it called attention to the recent exploits in DeFi, which highlight the inadequacy of current security practices, suggesting the sector must transition towards demonstrating and enforcing comprehensive system-wide security properties. The rise of prediction markets is poised to feature an influx of new contracts, raising critical discussions on outcome determination, while new decentralized governance frameworks and LLM-based oracles may emerge to address contested events.