Coinbase, a16z Back Skyfire AI Payments Platform

Skyfire secures $9.5M in funding from Coinbase Ventures and a16z for its autonomous AI payment agents.

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  • Skyfire gets $9.5 million in total funding for AI payments. 
  • Coinbase Ventures and a16z invested in the latest round. 
  • Skyfireโ€™s AI agents can make payments autonomously. 

The intersection of crypto and artificial intelligence (AI) continues to capture investor attention. One company in this niche is Skyfire, a platform for autonomous AI agents that can make payments without human input. 

Recently, Coinbase Ventures and a16z Crypto Startup Accelerator (CSX) invested in Skyfire to build infrastructure for secure and autonomous AI payments. This latest round brought the startupโ€™s total funding to $9.5 million. 

Coinbase, a16z Boost Skyfireโ€™s AI Payments Plans

AI and crypto are increasingly coming together. On Thursday, October 24, Coinbase Ventures and a16zโ€™s Crypto Startup Accelerator (CSX) announced their latest $1 million investment in Skyfire. This brings Skyfireโ€™s total funding to $9.5 million for autonomous AI crypto payments. 

Sponsored

Skyfire is building AI agents that can perform real payments without human intervention. Each agent has its own digital wallet, which users can load up with USD Coin (USDC) stablecoin. Alternatively, the agents can also connect to the traditional banking system.ย 

According to Skyfire, this system removes the need for human intermediaries in payment processing. Its main use case is heavily automated systems, such as financial services and e-commerce. The company claims that this boosts efficiency and security, minimizing human error. 

Are AI-Powered Payments The Future? 

As AI starts to extend all facets of the economy, the current infrastructure is struggling to keep up. Skyfire Co-Founder Craig DeWitt claims that traditional payment systems cannot handle the speed and scale of AI-driven transactions. For that reason, he called Skyfire the “Visa for the AI economy.โ€ย 

AI agents are useful in multiple industries. Notably, a Capgemini survey found that 10% of organizations already use this technology to automate tasks. Moreover, Skyfire is not the only company working on enabling AI payments. In August, Coinbase completed the first AI-to-AI crypto transaction, showcasing the ability of its native AI agents.ย 

On the Flipside

  • Just like humans, AI can make errors. The propensity for AI to hallucinate is a risk when it comes to giving it the ability to handle transactions independently. 
  • OpenAI has been under fire by regulators globally over perceived risks related to data privacy. 

Why This Matters

The latest funding round for Skyfireโ€™s AI agents is a step towards integrating AI into the global financial system. This could make the system more efficient and safe. 

Read more about AI in crypto payments: 
Coinbase Pioneers First โ€œAI to AIโ€ Crypto Transaction

Read more about Krakenโ€™s blockchain: 
Hereโ€™s How Krakenโ€™s Ink Blockchain Will Work

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
David Marsanic

David Marsanic is DailyCoinโ€™s journalist, focusing on Solana and crypto exchanges. David currently doesnโ€™t hold any crypto.

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