An agent is an intermediary authorized to act on behalf of another party, often called the principal. In crypto and blockchain, the term can refer to both traditional legal agents (people or firms with contractual authority) and technical agents (software that performs actions for a user or system).
Agent as a legal representative in crypto
In regulated crypto markets, agency relationships show up in custody, brokerage, market-making, and token issuance. For example, an exchange or custodian may be authorized to execute transactions, hold assets, or submit compliance-related information on behalf of clients under agreed terms. In frameworks like the EU’s MiCAR, crypto asset service providers often interact with users as authorized intermediaries, meaning their permissions, duties, and liabilities need to be clearly defined in contracts and policies.
Agent as software, bot, or AI system
In a technical sense, an agent is a program that carries out tasks for a user, wallet, or protocol. Common examples include trading bots that place orders based on predefined rules, DeFi automation tools that rebalance collateral, or “relayers” that submit transactions to a blockchain so users can pay fees in alternative ways. More recently, crypto AI agents use machine learning models to analyze on-chain and off-chain signals, then decide and execute actions such as monitoring liquidity, routing swaps, or managing risk across multiple protocols.
Authority, constraints, and risk
Because agents can move funds or commit users to actions, their authority is typically enforced through credentials and permissions, such as private keys, API keys, role-based access controls, or smart contract allowances. Limiting scope and auditing behavior matters, since compromised agents or overly broad permissions can lead to losses.
Understanding agents is important in crypto because it clarifies who or what is acting for you, what they are allowed to do, and who is accountable when something goes wrong.