Forest Bai is the Co-Founder of Foresight Ventures and has written a guest blog.
Looking ahead to 2025 we see that the convergence of AI and blockchain is changing industries and creating new opportunities. At Foresight Ventures, we see this as a watershed moment—one where decentralized AI, payment finance (PayFi), and real-world asset (RWA) tokenization are emerging as foundational pillars of the next wave of innovation.
They are revolutions, not just incremental changes. The way in which technology is integrated with markets, economies and human systems has been redefined. Foresight Ventures has a philosophy of investing that goes beyond the short-term. We aim to accelerate structural changes through identifying untapped potentials, developing systems with defensible long-term barriers of entry and scaling up technologies that provide real value.
The six sectors that we are bullish about for 2025 will be discussed here, along with why these sectors could redefine the future decentralized technology.
1. AI + Crypto: Revolutionizing Intelligent Systems
AI and Blockchain merged together have transformative potential. AI redefines the production process, while cryptocurrency reinvents relationships in production. Together, they enable a decentralized AI ecosystem where agents—independent systems powered by machine learning—can interact autonomously on the blockchain.
Agent-to-agent payment is a groundbreaking innovation, in which AI systems utilize cryptography for seamless value settlement. The interactions between AI systems and crypto are at the core of a new, decentralized data network-driven economy.
Think about the idea of personal AI assistants on devices, which preserve privacy and offer secure token incentives. As of now, decentralized networks can reduce AI computing costs up to 80%. They are a cost-effective and scalable alternative to traditional providers. These systems are a viable and cost-effective solution, as global AI energy consumption will increase by 400% over the next five year.
2. PayFi: Unlocking financial inclusion through yield-bearing stablecoins
The blockchain is still a very practical tool. Interest-bearing, stablecoins have brought a new level of appeal. They combine both price stability and yield generation to make them appealing for consumers as well as businesses.
Payments worldwide are expected to grow by a staggering $3 Trillion by 2031Traditional systems suffer from high fees, long settlement times and poor efficiency. PayFi solves these problems by reducing fees up to 90 percent and speeding settlement time to seconds.
PayFi is a way to provide financial services that are cheaper, faster and more inclusive for the billions who have been left out of banking. PayFi’s yield-bearing stabilitycoins unlock value by offering both financial and utility returns.
3. DeFi × TradFi: Building Bridges for Institutions
The integration of decentralized finance (DeFi) with traditional finance (TradFi) is no longer speculative—it’s becoming essential. The need for user-friendly, compliant platforms is increasing as institutions adopt blockchain to manage trading, risk, and custody.
Agora and August are leading projects that enable institutions to carry out transactions, clearing and lending directly via public blockchains. These platforms offer new opportunities for institutions to engage in decentralized eco-systems beyond tokenizing assets.
By addressing the barriers to institutional participation—such as regulatory compliance and operational complexity—DeFi × TradFi integration is creating a seamless pathway for financial institutions to leverage blockchain technology.
4. Tokenized real-world assets: unlocking trillions of value
By tokenizing typically illiquid assets such as bonds, commodities and real estate, we unlock trillions of dollars in value. RWA tokenization is projected to account for 10% or about USD 900 billion of GDP in 2030. Ten trillion dollar.
Smart contracts can automate the settlement of transactions and reduce it from several weeks to a few minutes. Increased liquidity and fractional ownership are making assets previously only accessible to institutions more widely available.
These advancements are not just technological—they are transformational. Tokenized RWAs create more efficient and inclusive financial systems by bridging blockchain with traditional finance. It’s more than just a new trend. This is a shift that will fundamentally change the global economy.
5. Migrating traditional high-traffic apps on-Chain
One of the best opportunities is to move high traffic traditional applications over to the blockchain. Some of these apps have established users and business models, but there is no dominant leader in the industry.
These businesses can use blockchain to improve their business loops and introduce new revenue sharing models. They can also scale internationally. Story Protocol, Sleepless.ai and TON, among others, are leading this shift, bridging Web2 ecosystems to Web3 ones.
The applications show how the blockchain technology can create new opportunities for growth by increasing user engagement and decentralizing value ecosystems. The migration of traditional apps onto the blockchain is not just a technical evolution—it’s a reimagining of how businesses operate in the digital age.
6. Decentralization is possible with Web3 Identity
Web3 continues to grow, increasing the demand for a private, permissionless, and secure identity layer. Decentralized applications are unable to fully integrate scenarios on and off chain without it.
SpaceID, Sign and Mocaverse, for example, are developing universal identity systems which allow users to use multiple chains with just a private ID or key. These solutions ensure trust, interoperability, and privacy—key pillars for mass adoption.
Web3 Identity Systems are creating a more decentralized Internet by enabling a seamless experience across all platforms. Users retain full control over their interactions and data.
Structural Innovation for Industry Transformation
The six sectors outlined above are more than investment opportunities—they represent the building blocks of a larger transformation. Foresight Ventures invests in systems with long-term potential that are both scalable and defensible.
Our thesis does not include projects that do not have significant market potential or scalability. We focus instead on innovative solutions that solve real-world problems and create self-reinforcing eco-systems.
Decentralized AI systems, for example, offer neutrality and transparency, while regulatory compliance assures that scalability is possible within existing frameworks. Ecosystem loops—where networks reinforce adoption and utility—drive sustainable growth and create lasting value.
Innovation: The New Age of Innovation
In 2025 the convergence of AI and PayFi with tokenization will mark the dawn of a brand new era. AI that is decentralized makes systems more intelligent and secure. PayFi is reshaping global payments by providing financial tools for billions of users who are underserved. Tokenized RWAs connect blockchain to traditional finance and unlock trillions of dollars in value.
At Foresight Ventures, we’re not just investors—we’re builders. Our goal is to support the creators and innovators who will lay the foundation for this emerging economy. Our goal is to help shape the future decentralized technologies by anticipating and investing into structural shifts.
Focus, clarity and discipline are required to seize the opportunities that lie ahead. Innovation is exciting, but building something that endures is the real challenge. Now is the right time to start building for 2025.
Postings in: DeFi, Opinions, RWA and Web3 The Author 
Forest Bai
Forest Bai, co-founder of Foresight Ventures bridges East and West collaboration on Web3. He has been in venture capital for over a decade and is a champion of decentralized finance.
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