Paxos Labs co-founder Bhau Kotecha has highlighted the potential role of artificial intelligence agents in enhancing liquidity for stablecoins, as the market value surpasses $300 billion. Kotecha suggests that AI agents could act as a transformative force, efficiently reallocating liquidity among stablecoin issuers and turning market fragmentation into an advantage. As the stablecoin sector diversifies with players like Tether, Circle, Athena, and PayPal's PYUSD, concerns about fragmentation and its impact on adoption have emerged. Kotecha notes that while fragmentation can create liquidity silos and user confusion, AI agents—capable of executing transactions autonomously—could mitigate these challenges by optimizing liquidity distribution.