Coinbase Ventures, the investment arm of the leading U.S. cryptocurrency exchange, has made 618 investments since 2018, building a portfolio of 422 startups. In a recent announcement, the firm outlined nine specific areas in cryptocurrency innovation it plans to support with funding in 2026, emphasizing real-world asset trading, decentralized finance (DeFi), and artificial intelligence (AI).
Key Investment Priorities for 2026
The firm stated that these categories represent opportunities for the next major breakthroughs in blockchain technology. Investments will focus on teams developing practical applications that enhance efficiency, accessibility, and security in the crypto ecosystem. Recent funding includes a stake in DeFi compliance platform 0xbow on November 18, 2025, along with investments in payment infrastructure providers Zynk and ZAR, and prediction markets platform Kalshi in October 2025.
Innovations in Real-World Assets and Trading
Coinbase Ventures anticipates growth in tokenized real-world assets (RWAs), which bridge traditional finance with blockchain. Key predictions include:
- New exposure mechanisms for RWAs, such as perpetual futures contracts that provide synthetic access to off-chain assets without direct ownership.
- Proprietary automated market makers (prop-AMMs), a exchange design aimed at shielding liquidity providers from exploitation by advanced traders and bots.
- Specialized exchanges and trading terminals tailored for efficient asset handling.
- Prediction market aggregators, expected to consolidate $600 million in fragmented liquidity across platforms, offering unified real-time odds for events.
Kinji Steimetz, a partner at Coinbase Ventures, highlighted the potential of perpetual futures, noting they “create synthetic exposure to offchain assets.” Jonathan King, another investor, described prediction aggregators as “the dominant interface layer” for the sector. Current data shows prediction markets like Kalshi and Polymarket handling significant volumes, though exact figures vary by venue.
Next-Generation DeFi and Privacy Developments
DeFi total value locked (TVL) stands 33% below its 2021 all-time high, yet Coinbase Ventures sees untapped potential in evolving protocols. The firm predicts integration of perpetual futures exchanges with lending platforms, allowing traders to earn yields on collateral while holding leveraged positions. This could improve capital efficiency in the sector. Additional focuses include:
- On-chain privacy-preserving tools, amid rising developer interest in assets like Zcash (ZEC).
- Protocols combining on-chain reputation systems with off-chain data to enable large-scale unsecured borrowing.
Ethan Oak, a Coinbase Ventures investor, explained that blending perpetuals with DeFi lending “would enable traders to earn yields on collateral while maintaining leveraged positions, unlocking new capital efficiency.” He also noted a “surge of developer energy” around privacy solutions. King emphasized the scale of the opportunity in unsecured credit, stating:
The US alone has $1.3 trillion in revolving, unsecured credit lines that crypto can capture through superior capital efficiency and global accessibility.
No uncertainties were flagged in these projections, as they align with observable trends in DeFi adoption and regulatory discussions.
AI-Driven and Infrastructure Advancements
Beyond DeFi, Coinbase Ventures is eyeing AI integrations to address gaps in data and verification. Predictions include:
- Decentralized physical infrastructure networks (DePIN) for collecting high-quality data to train robotic and embodied AI systems, where current datasets remain limited.
- “Proof of humanity” solutions using biometrics, cryptographic signing, and open standards to distinguish human-generated content from AI.
- AI agent tooling that allows non-technical users to build and launch on-chain businesses, handling tasks like smart contract generation, security audits, and monitoring.
Steimetz pointed to DePIN’s role in scaling physical data collection for robotics. Hoolie Tejwani, head of Coinbase Ventures, identified “proof of humanity” as a key growth area. King added that “2026 might see AI agents further democratize onchain building.” These initiatives could expand DeFi’s reach into AI and real-world applications, potentially increasing institutional participation. What could this mean for the future of decentralized finance and its integration with emerging technologies?
