In a Bloomberg TV interview, Michael Novogratz shared his outlook on the future of stablecoins. The Galaxy Digital founder and CEO said adoption is “only just beginning,” predicting that the sector is on the verge of major growth.
Speaking at the Goldman Sachs Asia Leaders Conference in Hong Kong on September 3, Novogratz said, “At some point in the not-so-distant future—whether that’s a year or five years—you’re going to see an explosion in stablecoin transactions.”
He pointed to artificial intelligence as the key driver behind this growth, noting that AI-powered agents will accelerate the shift from today’s $280 billion market toward the $2 trillion level forecast by firms such as McKinsey and Standard Chartered.
Michael Novogratz believes artificial intelligence will soon become the primary driver of stablecoin adoption.
“In the near future, the biggest user of stablecoins will be AI,” the Galaxy Digital CEO said. “You’ll just pick up your phone and tell it to buy your groceries. Your grocery agent will already know your preferences—whether you’re dieting, what you like to eat, and where to buy it. And instead of sending a wire or using Venmo, it will settle the payment with digital currency over crypto rails.”
Stablecoins are already seeing rapid global uptake following the passage of the GENIUS Act in the U.S. and the introduction of Hong Kong’s Stablecoin Ordinance. The market cap has surged to about $287 billion, edging closer to the $300 billion mark. Major consultancies forecast that figure could soar into the trillions within the next three years.
Meanwhile, the AI agent sector has also been expanding, with growing collaboration between crypto firms and AI platforms. Earlier this year, Flagship and Virtuals partnered to launch the FYI token. According to CoinGecko data, AI agents now make up over 46% of the total AI and crypto market cap, with the sector gaining 3.8% in the past 24 hours after last month’s slump.
Novogratz on Yuan- vs. Dollar-Backed Stablecoins
Novogratz also weighed in on the geopolitical competition between the U.S. and China, suggesting that stablecoins will become a new battleground in the race for global currency influence. While today’s market is dominated by dollar-backed assets like Tether (USDT), USDC, and PayPal’s PYUSD, he said it is “only a matter of time” before China launches a yuan-pegged stablecoin to challenge the dollar’s dominance.
“The U.S. is the leader right now. It’s the world’s largest economy, and everyone is trying to catch up. The speed of this shift has been remarkable,” he noted.
China is reportedly accelerating its efforts, with the state-owned National Petroleum Corporation exploring a Hong Kong stablecoin license to develop a yuan-backed digital currency for cross-border settlements. Officials are also consulting experts on how best to implement a renminbi-pegged stablecoin. Meanwhile, Japan and South Korea are making similar moves with their own local currency-backed projects.
