The following is a guest post from Forest Bai, co-founder of Foresight Ventures.
Looking ahead to 2025, the convergence of artificial intelligence (AI) and blockchain technology is transforming industries and unlocking new opportunities. At Foresight Ventures, we see this as an inflection point: a moment when decentralized AI, payment finance (PayFi), and real-world asset (RWA) tokenization emerge as fundamental pillars of the next wave of innovation.
These developments are not incremental; they are paradigm shifts. They are redefining how technology integrates with global markets, economies and human systems. At Foresight Ventures, our investment philosophy goes beyond short-term trends. We seek to catalyze structural change by identifying opportunities with untapped potential, advancing systems with defensible long-term barriers to entry, and scaling technologies that deliver real value.
Here I outline the six critical sectors we’re optimistic about for 2025 and explore why they’re poised to redefine the future of decentralized technology.
1. AI + Crypto: a revolution in intelligent systems
The merger of AI and blockchain offers transformative potential. AI is revolutionizing production processes, while crypto is redefining production relationships. Together, they enable a decentralized AI ecosystem in which agents (independent systems powered by machine learning) can communicate autonomously on the blockchain.
A groundbreaking development is agent-to-agent payments, where AI systems use crypto for seamless value settlement. These interactions form the basis for a new economy powered by decentralized computer and data networks.
Consider the concept of AI agents on devices, personal assistants that protect privacy while enabling secure, token-based incentives. Decentralized networks have already reduced AI computation costs by up to 80%, making them a scalable and cost-effective alternative to traditional providers. With global AI-related energy consumption expected to increase by 400% over the next five years, these systems represent a sustainable and efficient solution.
2. PayFi: Unlocking financial inclusion through yield-bearing stablecoins
Payments remain one of the most practical and common applications of blockchain. The arrival of interest-bearing stablecoins has added a compelling new dimension. These tokens combine price stability with yield generation, making them attractive to both consumers and businesses.
Global payment revenues are expected to reach a magnitude $3.3 trillion by 2031but traditional systems are hampered by high fees, slow settlement times and inefficiencies. PayFi solutions address these challenges, reducing cross-border costs by up to 90% and speeding settlement times to just seconds.
For billions of underbanked people around the world, PayFi offers an opportunity to access financial tools that are faster, cheaper and more inclusive. Yield-bearing stablecoins in particular unlock value for users by providing both utility and financial returns, making them a cornerstone of the PayFi revolution.
3. DeFi × TradFi: building bridges for institutions
The integration of decentralized finance (DeFi) with traditional finance (TradFi) is no longer speculative, but becomes essential. As institutions increasingly turn to blockchain for trading, custody and risk management, the need for compliant, easy-to-use platforms has never been greater.
Projects like Agora, August, and Aptos are leading the way by allowing institutions to execute, clear, and even lend directly on public blockchains. In addition to tokenizing real-world assets, these platforms open new possibilities for institutional engagement in decentralized ecosystems.
By addressing the barriers to institutional participation – such as regulatory compliance and operational complexity – DeFi × TradFi integration creates a seamless path for financial institutions to leverage blockchain technology.
4. Tokenized real-world assets: Unlocking trillions in value
Tokenizing traditionally illiquid assets, such as real estate, bonds and commodities, unlocks trillions in value. By 2030, RWA tokenization is expected to represent approximately 10% of global GDP $10 trillion.
Smart contracts automate transactions, reducing settlement times from weeks to minutes. Fractional ownership and increased liquidity democratize access to assets once limited to institutional investors.
These developments are not just technological in nature, they are transformational. By bridging traditional finance with blockchain, tokenized RWAs create more inclusive and efficient financial systems. This integration is more than a trend; it is a fundamental shift in the way value is created and exchanged globally.
5. Migrate traditional high-traffic apps into the chain
One of the most promising opportunities lies in bringing traditional, high-traffic applications onto the blockchain. Many of these applications have an established user base and proven business models, but lack a dominant market leader.
Blockchain enables these companies to optimize their commercial circuits, introduce innovative revenue sharing models and scale globally. Projects like Story Protocol, Sleepless.ai and TON are pioneers in this transition, connecting Web2 users to Web3 ecosystems.
These applications demonstrate how blockchain can unlock new growth opportunities by increasing user engagement and creating decentralized value ecosystems. The migration from traditional apps to the blockchain is not just a technical evolution, it is a new look at the way companies operate in the digital age.
6. Web3 Identity: The Key to Decentralization
As Web3 grows, the need for a secure, private, and permissionless identity layer becomes paramount. Without this, decentralized applications cannot fully integrate on- and off-chain scenarios.
Projects like SpaceID, Sign and Mocaverse are building universal identity systems that allow users to access multi-chain services with a single private key or ID. These solutions ensure trust, interoperability and privacy – key pillars for mass adoption.
By enabling seamless user experiences across platforms, Web3 identity systems lay the foundation for a decentralized Internet where users maintain control over their data and interactions.
Transform industries with structural innovation
The six sectors outlined above are more than investment opportunities: they represent the building blocks of a larger transformation. At Foresight Ventures, we prioritize long-term value creation by investing in systems that are scalable, defensible and structurally transformative.
Projects that do not have significant market potential, scalability or economic limitations are not part of our thesis. Instead, we focus on innovations that address real-world inefficiencies and build self-reinforcing ecosystems.
For example, decentralized AI systems provide transparency and neutrality, while compliance ensures scalability within regulatory frameworks. Ecosystem loops – where networks strengthen adoption and usability – drive sustainable growth and create lasting value.
Looking ahead: a new era of innovation
As we enter 2025, the convergence of AI, PayFi, and tokenization marks the beginning of a new era. Decentralized AI will make systems smarter and more secure. PayFi will reshape global payments and provide financial tools to billions of underserved users. Tokenized RWAs will connect blockchain to traditional finance, unlocking trillions in value.
At Foresight Ventures, we’re not just investors, we’re builders. We support makers, innovators and visionaries who are laying the foundation for this new economy. By anticipating structural shifts and investing in systems that create lasting value, we want to shape the future of decentralized technology.
The opportunities ahead are enormous, but require focus, clarity and discipline. While it’s easy to get excited about innovation, the real challenge is building things that last. As we enter 2025, now is the time to build.
