The digital asset industry’s focus is shifting from speculative trading cycles toward regulated, real-world financial infrastructure, according to Evan Auyang, Group President at Animoca Brands. In an interview, Auyang argued that the next phase of Web3 will be defined less by hype and more by institutional adoption—supported by stablecoin integration, tokenization of existing assets, and the rise of AI systems capable of executing transactions through programmable rails.
While regulatory approaches vary by jurisdiction, he said governments are increasingly pursuing frameworks for regulated stablecoins and broader digital-asset infrastructure. Auyang also connected the push toward “agentic” artificial intelligence—software agents that can autonomously plan and transact—to blockchain’s suitability as an internet-native settlement layer.
Key takeaways
- Stablecoins and tokenization are emerging as central Web3 use cases, shifting attention away from earlier speculative narratives.
- Institutional adoption is expected to be the defining catalyst for the next chapter of the industry.
- AI agents could accelerate blockchain usage by automating payments, investing, and lending through programmable money.
- Regulation is becoming a prerequisite for scaling digital-asset markets and connecting them with traditional finance.
- Trust and identity remain key hurdles, with decentralized identity highlighted as a missing component.
What the industry is prioritizing now
Auyang said blockchain’s original premise was to enable decentralized trust—starting with Bitcoin’s role after the 2008 financial crisis—and that the market has since gone through multiple innovation waves. He referenced early phases including NFTs and meme coins, then pointed to a current transition toward tokenizing real-world assets—business and financial instruments that already exist rather than new speculative constructs.
In his view, the industry has “returned to the basics,” emphasizing which applications can capture value using blockchain technology. He identified stablecoins, tokenized real-world assets, and the growing overlap between blockchain infrastructure and artificial intelligence as the strongest near-term areas.
Why institutional adoption is expected to lead
Auyang said the primary driver of institutional interest is operational efficiency. He argued that as financial actors move large volumes of capital, lower-cost settlement and transfer capabilities make digital-asset infrastructure more compelling than purely retail-oriented use cases.
He framed stablecoin adoption as a step beyond crypto trading, describing it as infrastructure for cross-border finance and on-chain settlement for tokenized financial markets. Under this approach, stablecoins function less like a niche instrument for market participants and more like a standardized mechanism for moving value across borders and platforms.
Crucially, Auyang suggested AI could further intensify these trends by automating transactions and enabling software agents to participate directly in financial systems, potentially increasing the volume and frequency of on-chain activity.
How agentic AI changes the requirements for payments and settlement
Auyang argued that autonomous AI systems need an internet-native financial infrastructure. In his example, an “agent cannot use a credit card,” implying that traditional payment rails may not offer the programmability required for continuous, automated execution.
Instead, he said blockchain-based programmable money can provide a mechanism for agents to transact at machine speed. He expects AI agents to act faster than human workers and, as systems mature, to push financial services toward more continuous, potentially 24/7 market dynamics.
From an investor and product perspective, the key point is that agentic AI could convert “automation” from a back-office concept into a direct front-end market behavior—agents executing payments, trades, and other financial actions without human intervention each time a decision is made.
Regulation, stability, and the push for non-dollar rails
Auyang said regulation has become a critical component for connecting blockchain-based finance with traditional financial systems, noting that the blockchain side also needs its own regulatory frameworks. He suggested that institutional capital will only scale meaningfully when both compliance and infrastructure are in place.
He pointed to Asia’s efforts to build digital-asset capabilities, highlighting Hong Kong as being “forward” in its approach and citing activity across Singapore, Japan, and the UAE. He also said many governments are pursuing regulated stablecoins to maintain monetary sovereignty as more financial assets become tokenized.
In his framing, geopolitical conditions reinforce the desire for stablecoin alternatives beyond a single currency reference. Auyang suggested this helps explain why multiple jurisdictions are working on non-dollar stablecoin development.
What still needs to happen for the model to go mainstream
Despite his optimism, Auyang emphasized that adoption depends on both technology and regulation, with trust as a primary hurdle. He said confidence will build gradually as successful products, clearer rules, and institutional participation demonstrate real value to consumers.
He also flagged decentralized identity as a necessary missing element in the ecosystem, arguing that without it, broader automation and secure agent-driven commerce may struggle to scale. He described a likely adoption pattern where early uptake is slower, followed by faster growth once compelling products reach the market.
On use cases, he highlighted payments, investing, and lending as the biggest opportunities. He characterized agentic investing as already underway for early adopters but suggested AI could broaden access to more sophisticated strategies by allowing continuous market analysis and execution based on user-defined risk parameters—potentially democratizing capabilities previously concentrated in professional trading environments.
Looking ahead, investors and market participants are likely to focus on regulatory milestones for stablecoins and tokenized markets, progress toward decentralized identity, and evidence that AI-driven automation can operate reliably and securely in live financial settings. The next phase of Web3 adoption, Auyang suggested, will increasingly be measured by institutional infrastructure building rather than speculative asset cycles.
