Michael Novogratz, founder and CEO of Galaxy Digital, said AI tools could drive a surge in stablecoin transactions in the coming years.

Speaking at the Goldman Sachs Asia Leaders Conference in Hong Kong, Novogratz predicted that AI agents may become the largest users of stablecoins, digital tokens that track the value of traditional currencies.

He described a scenario where AI agents handle purchases, such as groceries, and pay with stablecoins.

Novogratz did not specify a timeline, noting the shift could happen within the next one to five years.

Stablecoins, which are issued by private firms and typically backed by assets like cash, are increasingly used for payments.

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🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Stablecoin usage has reached unprecedented scale with massive institutional adoption

The stablecoin market has experienced explosive growth, expanding from just $4 billion in circulation in 2020 to nearly $200 billion by early 20251.

This 50-fold increase reflects more than speculative interest—it demonstrates genuine utility in global finance.

Transaction volumes tell an even more dramatic story, with global stablecoin transactions surging 92% year-over-year to reach $3 trillion in August 2025 alone2.

To put this in perspective, USDC processed $1 trillion in transactions in November 2024, while Tether and Circle’s USDC now handle monthly transaction peaks of $1.14 trillion and $3.29 trillion respectively21.

These numbers indicate that stablecoins have moved far beyond crypto trading into mainstream financial infrastructure, processing transaction volumes that rival traditional payment networks.

2️⃣ Traditional financial institutions are rapidly integrating stablecoin infrastructure

Major payment companies like Mastercard and Visa have now integrated stablecoin solutions, marking a shift from skepticism to active adoption by established financial players2.

This integration by traditional finance giants demonstrates that stablecoins are no longer viewed as experimental technology but as critical infrastructure for modern payments.

The institutional embrace extends beyond payment processors—traditional financial institutions are increasingly recognizing stablecoins’ ability to facilitate instant, cost-effective settlements compared to existing systems3.

Regional adoption patterns show sophisticated institutional usage, with USDC focusing on institutional use cases in the US and EU, while European stablecoin EURC experienced 89% month-over-month growth as it aligns with MiCA regulatory compliance2.

This regulatory clarity has been crucial, with three bills introduced in US Congress aimed at creating legal frameworks for payment stablecoins, signaling a fundamental shift in how regulators view these digital assets4.

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