Saturday, October 4, 2025

AI Agents Could Propel Stablecoin Liquidity, Says Paxos Labs Executive

The future of stablecoin adoption may pivot dramatically, fueled not by people, but by AI agents. According to Bhau Kotecha, co-founder of Paxos Labs, these autonomous programs could optimize liquidity by shifting funds to the most efficient stablecoin issuers, thus leveraging the current market fragmentation. As stablecoin regulations in the U.S. become clearer and the market surpasses $300 billion, the diversity of issuers—from Tether and Circle to PayPal’s PYUSD—could create confusion and liquidity silos. However, AI agents can resolve these issues by instantly determining the best economic options. Galaxy Digital CEO Mike Novogratz supports this view, predicting that AI will drive transaction volumes through stablecoins for everyday purchases. Companies like Cloudflare are already developing stablecoins like NET dollar to facilitate this. As the integration of AI in crypto accelerates, the potential for stablecoin transactions is set to explode, transforming market dynamics.

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