Paxos Labs co-founder: AI agents may become a driving factor for the liquidity of stablecoins.

PANews, October 4 - According to Cointelegraph, as the market capitalization of stablecoins surpasses $300 billion, Paxos Labs co-founder Bhau Kotecha stated that AI agents could become an "unknown factor" capable of instantly transferring Liquidity to the most efficient issuance institution and turning market fragmentation into an advantage. As new entrants join the increasingly diversified field—from dollar-backed leaders like Tether and Circle to synthetic assets like Athena, and PayPal's consumer-facing payment PYUSD—people are beginning to question whether fragmentation will pose problems for the industry. Bhau Kotecha, co-founder and head of Paxos Labs, stated, "Fragmentation is a double-edged sword." With competition among different models, and the issuance of stablecoins that align with their businesses, it has the potential to "create liquidity islands and user confusion, thus hindering its adoption." However, it believes that AI agents—autonomous programs capable of making decisions and executing tasks like transactions or fund transfers without human intervention—can solve this problem.