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S Pettigrove and L Misthos

Coinbase introduces AI agents for on-chain transactions



Coinbase has introduced “Based Agent,” a tool designed to enable crypto users to create their own AI agents with crypto wallets in less than three minutes. Once configured, these AI agents can autonomously handle various onchain tasks, from executing trades to staking and swaps.


“Based Agent” operates as a template tool built with Coinbase’s Software Development Kit (SDK) and integrates technology from OpenAI and Replit. By using the SDK, crypto users can create and manage an AI bot specifically programmed to interact with smart contracts and complete onchain tasks.


According to Coinbase developer Lincoln Murr, the objective is to streamline the process of building custom AI agents, making the setup accessible to all users with basic tools, including API keys from Coinbase and OpenAI, alongside Replit's forked template.



What can Based Agent do?

Once set up, Based Agent can execute smart contract functions, perform trades, stake tokens, and even register their own base name. This move aligns with Coinbase CEO Brian Armstrong’s advocacy for autonomous AI agents in the crypto ecosystem.


Coinbase's Vision for AI-Driven Transactions

The platform’s push for AI-driven crypto tools could align with broader predictions for blockchain’s future. Coinbase’s Base protocol head, Jesse Pollak, mentioned Luna—a similar AI agent capable of tipping users autonomously onchain—as an example of how AI agents could deepen engagement in social interactions. Pollak highlights Luna as one of the first AI tools in the space to autonomously handle microtransactions on X.


These developments reflect a broader belief that AI agents could become a significant part of everyday commerce through blockchain integration. The notion of a fully autonomous blockchain landscape underscores the pace of change, as AI and blockchain integration grows.

The question of how AI bots could revolutionize blockchain transactions and beyond was also covered in a recent A16Z podcast on AI bots and memecoins touching on the $GOAT memcoin frenzy where an AI has apparantly been promoting a memecoin, driving it to a near US$1B market capitalisation within 2 weeks of launch.


The Future of AI and Blockchain


Coinbase’s “Based Agent” is quite a bit different to the $GOAT situation and marks a significant step in bridging the gap between AI and crypto operations. It remains to be seen how users take advantage of its potential and what these AI agents will be doing. Will we soon see AI-driven agents dominating the majority of onchain transactions? The implications for speed, scale, and security in blockchain transactions may soon become apparent.


This technological leap also raises new and complex legal and regulatory issues for software developers and platforms who look to offer or deploy AI bots to users, while the potential implications for market integrity could be significant just as the use of algorithms and other automated trading strategies have had significant impacts on traditional markets. If an AI bot makes some bad trades or is tricked into losing the owner's assets, will we see some kind of claim? For the time being users should adopt a caveat emptor approach to AI agents and not put them in charge of anything they aren't willing to lose.


By Steven Pettigrove, Luke Misthos and Michael Bacina

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