Paxos Labs Co-Founder Sees “X-Factor” for Adoption

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The next wave of stablecoin adoption may not come from humans at all. According to Bhau Kotecha, co-founder of Paxos Labs, autonomous AI agents could become the key drivers of stablecoin liquidity.

Kotecha told Cointelegraph that as regulations in the US bring more clarity to the market — now above $300 billion in total supply — fragmentation across issuers no longer has to be a problem.

“Fragmentation isn’t necessarily a deterrent; it can actually become a market-level optimizer,” Kotecha said. He believes AI agents will “switch instantly” to whichever stablecoin offers the best economics, compressing fees and forcing issuers to compete on fundamentals.

[Nahid10]

If AI agents become stablecoin market participants, liquidity could grow exponentially and continuously — machines don’t sleep or panic sell.
This shift could transform stablecoins from trading tools into the backbone of automated global commerce.

[kelson10]

Bhau Kotecha’s insight hints at a future where AI agents replace traders and remitters as the main users of stablecoins.
The result could be a 24/7 economy of intelligent agents conducting transactions far faster than humans ever could.