AI, Blockchain, and Crypto’s Role in Modern Investing

A Thought Leadership article we liked from Alto Securities:

The Future of Investing: AI, Blockchain & Crypto

The investing world is undergoing a profound transformation as three powerful technologies—artificial intelligence, blockchain, and cryptocurrency—converge to create what we’re calling “The Technology Trio.”

This convergence is fundamentally changing how assets are valued, traded, and managed, representing both unprecedented opportunity and new complexity for investors.Together, these technologies are breaking down barriers and providing access to investments previously reserved for the ultra-wealthy and institutions. While broader availability is increasing through technological platforms and regulatory advancements, access remains subject to eligibility requirements and may still be restricted for many retail investors.

AI Infrastructure: The New Edge

Artificial intelligence has transitioned from a conceptual buzzword to a practical tool, reshaping how alternative investments are analyzed and managed. With 72% of financial firms making "moderate to large investments" in generative AI in 2025, this technology is becoming essential infrastructure within the industry.

Specialized financial AI platforms are now putting institutional-grade analysis into the hands of investors, with 91% of asset managers either using or planning to use AI in their investment process. This adoption is driven by results—an April 2025 global survey found the average ROI on AI investments is 41%, with organizations seeing $1.41 return for every dollar invested.

Key Applications in Alternative Investments

What this Means for Investors

Individuals are gaining access to a growing ecosystem of AI-driven tools capable of flagging unusual risks, running scenario analyses, or generating investment theses from financial reports and market sentiment.

This evolution is helping to broaden access to sophisticated analytical tools and enabling accredited investors to leverage insights that were once primarily available to institutional firms. Even investors who do not use AI directly may benefit from enhanced diligence, scenario modeling, and portfolio insights when working with advisors or platforms incorporating these technologies.

Blockchain: Owning a Slice of Previously Inaccessible Assets

Blockchain technology has evolved beyond cryptocurrency to solve fundamental investing challenges—increasing accessibility, efficiency, and potential liquidity for traditionally illiquid assets.

The Tokenization Revolution

Real-world assets are rapidly being tokenized across multiple classes:

Real-World Results

BlackRock’s BUIDL fund—its first tokenized U.S. Treasury product—has quickly captured ~$2.47B in AUM since launching in March 2024, making it the largest player in the tokenized treasury market. Built on Ethereum and now multichain (including Solana, Polygon, and Avalanche), BUIDL offers qualified investors access to U.S. dollar yields via short-term government securities. Daily dividends have already topped $7M since inception, and custody is managed by firms like Anchorage, Fireblocks, and BNY Mellon.

Beyond Tokens: Smart Contracts and Compliance

The true innovation extends beyond fractional ownership to smart contracts that automate processes and reduce intermediaries, potentially cutting transaction costs by up to 30%. Meanwhile, platforms like Securitize and Provenance ensure regulatory compliance, enabling accredited investors to trade tokenized alternatives with appropriate legal protections. Together, this creates a diminished need for certain intermediaries, lower costs, and venues to trade and custody tokenized alternatives with transparency and legal protection.

Cryptocurrency:  Maturing into a Legitimate Alternative Asset

Cryptocurrency has evolved from what some believed to be a speculative digital asset to an established alternative investment class. While still volatile, growing institutional adoption and regulatory developments are enhancing its standing in diversified portfolios.

Understanding the Risks

While the Technology Trio presents compelling opportunities for portfolio growth and diversification, it is also important to understand the specific risks that accompany these innovative investments:

To find your comfort zone, experts recommend diversification, thorough due diligence, measured allocation, and strong security practices to navigate these risks effectively.

Navigating the Technology Trio with Alto

The convergence of AI, blockchain, and cryptocurrency is creating unprecedented access to previously unavailable investment vehicles with potentially transformative returns for accredited investors. Whether you're looking to diversify your alternative portfolio with cryptocurrency, explore real estate opportunities, or leverage AI-enhanced investment strategies, Alto provides both the platform to access these opportunities and the educational resources to navigate them effectively in a tax-advantaged environment.

Thanks for this article and its graphics to Alto Securities.

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