Venture firm a16z has released its annual cryptocurrency outlook. It outlined a significant shift in how blockchain, AI agents, and global payment methods will change by 2026.
The research emphasizes three key drivers: autonomous agents, the disappearing payment network, and the new era of privacy-centric blockchain that will lead these core drivers. All these changes signify a fundamental redesign of the internet financial structure.
AI agents lead the great transformation
According to a16z, the most significant change is that AI agents are emerging as economic participants. In financial services, agents outnumber workers by almost 100 to 1.
However, these autonomous systems still lack identity, authorization, or regulatory compliance structures. The firm explains that in 2026, KYA: Know Your Agent, the first version of agent identity verification, will be introduced. This cryptographic identity layer connects agents to owners, constraints, and responsibilities.
Without this, agents remain in a “ghost” state where “bank access is impossible.” Secure transactions or real market access are not possible. Only with the introduction of an identity layer can they become programmed market participants capable of real-time spending, trading, and payments.
Payments will disappear into internet infrastructure
This change leads to the second major prediction. Payments will disappear into the network. When AI agents automatically generate transactions — such as data purchases, GPU usage payments, and API call payments — the movement of funds must occur as swiftly and intricately as information.
New technologies like x402 enable value transfers to occur instantly, without permission, and without intermediaries.
In this model, payments become the fundamental operation of the network rather than an application layer. Banks, stablecoins, and payment systems will operate as the invisible infrastructure for transactions between agents.
Privacy chain, leading the way
Privacy is the third pillar of the 2026 outlook envisioned by a16z. The firm believes that privacy will be the strongest barrier to entry in cryptocurrency, explaining that it is more important than performance or throughput.
More specifically, when transactions become private, users will experience real inconveniences when changing chains. This is because metadata is exposed during secret transfers. This phenomenon causes a “privacy lock-in effect” and gives an advantage to chains that successfully implement privacy.
Arthur Hayes also mentioned the same point. He stated that institutional adoption cannot fundamentally expand on an open blockchain.
“These large institutions do not want their information to be made public or be at risk of being disclosed.” He added that if Ethereum serves as the foundational security infrastructure, Layer 2 privacy solutions could emerge first.
a16z's other cryptocurrency outlook highlights the growth of stablecoin infrastructure, the transition from tokenization to on-chain creation, faster SNARKs for verifiable cloud computing, and the emergence of 'staked media' where commentators prove credibility through on-chain pledges.