Franklin Templeton's head of digital assets and innovation Sandy Kaul stated on Wednesday that artificial intelligence agents represent the next killer use case for blockchain and cryptocurrency. Kaul explained that the AI agent economy will increase demand for blockchain protocols capable of hosting machine-to-machine micropayments, as legacy card networks are unsuitable for agentic payments due to high fees and settlement times. A joint report published last Wednesday by payments giant Visa and investment thesis platform Artemis argued that traditional cards built for low-frequency human commerce are insufficient for AI agents, which require infrastructure with near-zero fees and faster settlement to make agentic micropayments commercially viable.
Kaul made the statement in an X post on Wednesday, questioning whether the traditional investment playbook of buying shares in AI-aligned companies will work for agentic AI. The post exceeded 1,800 words in length.
Blockchain Networks Offer Faster Settlement Than Traditional Card Systems
Kaul identified blockchain networks such as Aptos, Solana and the BNB Chain as more suited for the agentic economy. These networks settle transactions in seconds, which is faster than the one-to-three business-day settlement time of the Visa network.
The Visa-Artemis joint report stated that AI agents need infrastructure with near-zero fees and faster settlement to make agentic micropayments commercially viable.
x402 Protocol Processes $15 Million in Volume Since May 2025 Launch
The x402 payment protocol developed by Coinbase processed $15 million in adjusted volume across over 109 million adjusted transactions since it was launched in May 2025, according to the Visa and Artemis joint report.
The protocol represents one example of machine payment protocols showing signs of adoption in the emerging AI agent economy.
Visa and Tempo Launch AI Payment Tools in March
Visa's crypto division and Stripe-backed Tempo both launched AI tools in March. Visa's tool allows AI agents to make same-day payments.
These product launches occurred as the payments industry began developing infrastructure specifically designed for AI agent transactions.
FAQ
What did Franklin Templeton say about AI agents and blockchain on Wednesday?
Franklin Templeton's head of digital assets Sandy Kaul stated on Wednesday that AI agents are the next killer use case for blockchain and cryptocurrency. Kaul explained that the AI agent economy will grow demand for blockchain protocols hosting machine-to-machine micropayments, as legacy card networks are unsuitable due to high fees and settlement times.
How does blockchain settlement speed compare to traditional card networks?
Blockchain networks such as Aptos, Solana and BNB Chain settle transactions in seconds, while the Visa network has a one-to-three business-day settlement time according to Kaul's statement.
What adoption metrics has the x402 payment protocol achieved?
The x402 payment protocol developed by Coinbase processed $15 million in adjusted volume across over 109 million adjusted transactions since its May 2025 launch, according to the Visa-Artemis joint report.
