Why we’re bullish on decentralized AI, PayFi, token assets and beyond

Below is a guest post from Forest Bay, co-founder of Foresight Ventures.

We look forward to 2025, confluence artificial intelligence AI and blockchain technology are transforming industries and opening new opportunities. At Foresight Ventures, we see this as a watershed moment — one where decentralized AI, payment finance (PayFi), and Assets in the real world RWA tokens are emerging as key pillars of the next wave of innovation.

These developments are not gradual. They are paradigm shifts. It is 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 changes by identifying opportunities with untapped potential, strengthening systems with defensible long-term barriers to entry, and expanding the range of technologies that deliver real value.

Here, I’ll outline the six important sectors we’re looking at for 2025 and explore why they’re poised to redefine the future of decentralized technology.

1. Artificial Intelligence + Coding: Revolutionizing Intelligent Systems

The fusion of artificial intelligence and blockchain technology offers transformative potential. Artificial intelligence is revolutionizing production processes, while coding is redefining production relations. Together, they enable a decentralized AI ecosystem where agents — autonomous systems powered by machine learning — can interact autonomously on the blockchain.

One pioneering development is agent-to-agent payments, where AI systems use cryptography to seamlessly settle value. These interactions are the foundation of a new economy powered by decentralized computation and data networks.

Consider the concept of on-device AI agents, personal assistants that preserve privacy while enabling secure token-based incentives. Decentralized networks have already reduced AI computing costs by up to 80%, making them a scalable and cost-effective alternative to traditional service providers. Since global AI-related energy consumption is expected to rise by 400% in the next five years, these systems represent a sustainable and efficient solution.

2. PayFi: Unlocking financial inclusion through yield-paying stablecoins

Payments remain one of the most practical and high-frequency use cases of blockchain. The emergence of interest-bearing stablecoins has added a compelling new dimension. These tokens combine price stability and yield generation, making them attractive to both consumers and businesses.

Global payment revenues are expected to reach $3.3 trillion by 2031But traditional systems are hampered by high fees, slow settlement times, and inefficiency. PayFi solutions address these challenges, reducing cross-border fees by up to 90% and accelerating settlement times to just seconds.

For billions of underbanked individuals around the world, PayFi represents an opportunity to access faster, cheaper and more inclusive financial tools. Yield-yielding stablecoins, in particular, unlock value for users by providing utilities and financial returns, making them a cornerstone of the PayFi revolution.

3. DeFi x TradFi: Building bridges for enterprises

integration Decentralized finance DeFi combined with traditional finance (TradFi) is no longer speculative, but rather a necessity. As organizations increasingly rely on blockchain technology for trading, custody, and risk management, the need for compatible, easy-to-use platforms is greater than ever.

Projects such as Agora, August, and Aptos They are leading the way by enabling institutions to conduct transactions, clearing, and even lending directly on public blockchains. Beyond tokenizing real-world assets, these platforms open new possibilities for institutional participation in decentralized ecosystems.

By addressing barriers to institutional participation – such as regulatory compliance and operational complexity – the DeFi x TradFi integration creates a seamless path for financial institutions to leverage blockchain technology.

4. Real World Tokenized Assets: Unlocking Trillions in Value

Tokenization of traditionally illiquid assets, such as real estate, bonds and commodities, unlocks trillions of value. By 2030, RWA tokenization is expected to represent 10% of global GDP, or approx 10 trillion dollars.

Smart contracts automate transactions, reducing settlement times from weeks to minutes. Fractional ownership and increased liquidity are democratizing access to assets that were once limited to institutional investors.

These developments are not just technological, they are transformative. By bridging traditional finance with blockchain technology, tokenized RoyIt works to create more inclusive and efficient financial systems. This integration is more than just a trend; It is a fundamental shift in how value is created and exchanged globally.

5. Migrate traditional applications with high on-chain traffic

One promising opportunity lies in bringing traditional, high-traffic applications to the blockchain. Many of these apps have established user bases and proven business models but lack a dominant industry leader.

Blockchain technology enables these companies to improve their business cycles, introduce innovative revenue sharing models, and expand globally. Projects like Story Protocol, Sleepless.ai, and TON are pioneering this transformation, connecting Web2 users to Web3 ecosystems.

These applications demonstrate how blockchain can unlock new growth opportunities by enhancing user engagement and creating decentralized ecosystems of value. The migration of traditional applications to blockchain is not just a technical development – ​​it is a reimagining of how businesses operate in the digital age.

6. Web3 identity: the key to decentralization

like Web3 With the increase, the need for a secure, private and permissionless identity layer has become critical. Without them, decentralized applications cannot fully integrate on-chain and off-chain scenarios.

Projects like SpaceID, Sign, and Mocaverse are building global identity systems that allow users to access cross-chain services using a single private key or ID. These solutions ensure trust, interoperability, and privacy, which are the cornerstones of universal adoption.

By enabling seamless cross-platform user experiences, Web3 identity systems lay the foundation for a decentralized Internet where users retain control of their data and interactions.

Transforming industries with structural innovation

The six sectors mentioned above are more than just investment opportunities – they represent the building blocks of a greater transformation. At Foresight Ventures, we prioritize long-term value creation by investing in systems that are scalable, defensible and structurally transformative.

Projects that lack significant market potential, scalability, or economic moats 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 foster adoption and benefit – drive sustainable growth and create lasting value.

Looking to the future: 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 safer. PayFi will reshape global payments, providing financial tools to billions of underserved users. Tokenized RWAs will connect blockchain to traditional finance, unlocking trillions of value.

At Foresight Ventures, we’re not just investors, we’re builders. We support the creators, innovators and visionaries who are laying the foundations of this new economy. By anticipating structural shifts and investing in systems that create lasting value, we aim to shape the future of decentralized technology.

The opportunities before us are enormous, but they require focus, clarity and discipline. While it’s easy to get excited about innovation, the real challenge is building things that last. As we move into 2025, the time to build is now.