AI agents are poised to drive stablecoin adoption, transforming market fragmentation into a competitive advantage, says Bhav Kotecha, Paxos co-founder. The stablecoin market has exceeded $300 billion in capitalization, though it remains fragmented across jurisdictions and token models, including USDT, USDC, synthetic USDe, and PayPal’s PYUSD. This fragmentation risks liquidity issues and user confusion, challenging stablecoin growth. However, AI agents—autonomous software capable of executing transactions—could alleviate these problems by optimizing liquidity flow to the most efficient issuers, enhancing user experience through lower fees and increased competition.
Galaxy Digital’s CEO, Mike Novogratz, predicts AI will become the primary user of stablecoins, autonomously handling transactions without human intervention. Notably, Google and Coinbase have collaborated to support AI applications in stablecoin payments. Tether co-founder Reeve Collins predicts that by 2030, all fiat currencies will be represented as stablecoins, underscoring the critical evolution in digital finance facilitated by AI technology.
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