Steve McLaughlin, founder and CEO of FT Partners, said the investment bank is developing proprietary AI technology and integrating it into internal deal operations as part of a broader strategic push into technology-driven financial infrastructure.
McLaughlin predicted a significant shift toward on-chain finance centered on asset tokenization. "My prediction is, in 20 years, every single asset class is fully tokenized," he said. "I don't think 100 percent. I think every asset class would go from zero percent to maybe 80 percent tokenized."
The forecast positions tokenization as a core driver of efficiency across traditional and decentralized finance, enabling new liquidity channels and programmable ownership structures.
FT Partners, established in 2001, operates as the largest fintech-focused investment bank globally with a 250-person team across San Francisco, New York, Miami and London. The firm advised on Coinbase's $4.3 billion acquisition of Deribit and multiple multi-billion dollar raises for Revolut.
McLaughlin left Goldman Sachs at 32 to start the firm. He described 2023 as the "darkest period in fintech's 30-year history," surpassing the dot-com crash and 2008 financial crisis. The overheated 2021 boom triggered a correction that nearly froze deal activity.
By late 2025, crypto returned with increasing regulatory support. FT Partners is signing more engagement letters and closing more deals than ever, with McLaughlin projecting 2026 as a "blowout year" for the firm.
The recovery is distinguished by high-quality company formation. These firms operate with lean technology teams, demonstrate clear product-market fit and execute disciplined strategies. Founders have integrated lessons from the 2020 and 2021 cycles, avoiding excessive spending. They are leveraging AI to develop products at roughly a quarter of previous capital requirements. Even InsurTech is seeing renewed fundamental business models.
McLaughlin identified a "zombie zone" of solid companies that failed to achieve escape velocity. These firms cut costs and now grow flat or at just five percent, facing harsh conditions raising equity and managing expensive debt. Potential acquirers show little interest in companies with flat growth and inverted unit economics. McLaughlin anticipates significant mergers and acquisitions at depressed prices and mark-to-market writedowns across investment portfolios.
High-quality companies across all stages are experiencing a "genuine heyday," highlighting a bifurcated market where capital flows to robust, AI-enabled business models.
