đź“ť usncan Note: Why Agentic AI Will Power Stablecoin Adoption
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Agentic AI is set to turbocharge stablecoin usage
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Even as the Trump family continues to expand investments and (paper) profits in the crypto sector, and as bitcoin continues to trade well in excess of $100,000 (a target only whispered about a few short years ago), AI developments and investments continue to dominate headlines, investor calls, and policy decision-making. Even as TradFi adoption of stablecoins, bitcoin products and adjacent lending services, and institutional investments into cryptoassets continues to accelerate the intersection of AI and cryptoassets continues to present an opportunity for investors and policymakers alike.
Specifically the support and enthusiasm for stablecoins/stable tokens, highlighted by the recent launch of the Frontier token by the state of Wyoming provides an almost ideal on-ramp for AI and crypto to continue coalescing. Since virtually all stablecoins are backed or reserved by U.S. dollars or dollar equivalents, such as short-term U.S. Treasuries, the integration of these on-chain payment (with lower volatility) rails into AI protocols would be simpler and more cost effective than attempting to merge decentralized crypto options with AI applications. Stablecoins also serve as an integral part of AI adoption and expansion that has not yet been fully developed or discussed, even in the midst of wider interest and the advancement of various AI models; agentic AI. Agentic AI and other AI-driven bots will need a medium of exchange and way of processing payments that can scale, operate on-demand, and generally be able to keep pace with AI acceleration.
Let’s take a closer look at how and why agentic AI may very well provide the next leg of stablecoin growth and adoption.
AI Needs Stablecoins
One market reality that has remained, to date, minimally addressed by some of the largest actors in the sector is that in order for bots, AI applications, and agentic AI to achieve mainstream adoption they will need a medium of exchange that is able to keep pace with these AI tools. Many cryptocurrencies and cryptoassets – including bitcoin – remain too volatile or (in the case of many NFTs) too illiquid to be used as a medium of exchange. Stablecoins provide a reliable store of value that is 1) being rapidly adopted by TradFi financial institutions as well as payment processors and 2) can scale with the adoption of AI applications.
While AI adoption may not necessarily need or require stablecoins to continue making inroads via consumer or retail markets, for the advertised efficiencies and savings of AI to be achieved at any commercial level, compensation mechanisms and payment channels will need to be developed. Stablecoins, especially those being developed and deployed by TradFi institutions and even states, in the case of Wyoming, provide a traceable, low-volatility, and instantaneous method of conducting business.
TradFi Adoption Is Already Here
An underlying truth of the AI marketplace is that while consumer and retail utilization has accelerated since ChatGPT burst into the mainstream the organizations that are leading the AI push and adoption curve remain large institutions. This trend is present regardless of which specific industry is examined; financial services are no exception. Between the rise of AI-driven or augmented trading, analytics, lending, and other services alongside the enthusiastic embrace of stablecoins or stable tokens by these very same financial institutions have resulted in TradFi leading these adoptions on both fronts.
Stablecoins have already been developed and deployed by banks and other financial institutions, and as AI-bots and agentic tools continue to make inroads across economic lines and sectors it seems logical to conclude that using stablecoins to monetize and compensate these bots and tools is a relatively short time away. With the resources, management interest, and financial benefits being accrued from using both AI and stablecoins firmly in the place, the adoption and implemented of both agentic AI crypto payments seem set to accelerate due to growing TradFi utilization.
Smart Infrastructure
Smart, or at least smarter, infrastructure, has been an idea and concept discussed by policymakers and business leaders for decades but without effective and trustworthy AI agents to automate – or at least augment – the underlying processes of infrastructure management these ideas has remained ideas versus actual policy decisions. While efforts with autonomous vehicles remain the most widely known example of smart infrastructure or smart grid management this is just one relatively small example of the potential use cases for automated or fully autonomous infrastructure and public services. With increasing demands on water, electrical, and waste management grids the need for decentralized, automatic, and real-time management of these resources is set to increase.
Alongside the growing investment in such projects by private equity groups as well as other financial institutions, the need for a method of compensation will also increase, presenting another occasion where agentic AI and stablecoins can overlap and positively drive adoption of each other. Especially in developed nations where infrastructure is often times in need of either substantial rehabilitation or a complete reconstruction, AI will almost certainly play a decisive role in how these new grids are managed. Stablecoins represent a comprehensive solution to the problem as to how these 24/7 agents, making both large scale and micro decisions, will be compensated.
AI and stablecoins are both being adopted in an accelerating manner, and can help each other achieve even more mainstream growth.
