Won Stablecoins Need Settlement Rails and Digital ID to Compete in AI Payments

Won-backed stablecoins face increasing competition in the global market as the AI-driven 'agent economy' takes shape, according to Hashed Open Research (HOR). To remain competitive, these stablecoins will need dedicated settlement rails and digital identity verification systems. HOR's recent report, titled 'Strategies for Won Stablecoins in the Age of the Agent Economy,' warns that competition is moving beyond issuance and toward control of payment, settlement, and distribution infrastructure.

Global firms are already integrating their stablecoin issuance with payment infrastructure, as seen with Stripe's acquisitions of blockchain infrastructure companies. Circle, the issuer of USDC, is also expanding into settlement by building its own blockchain payments network, Arc. HOR notes that this shift will concentrate profits and influence in the hands of companies controlling settlement and distribution networks, rather than issuers themselves.

The report highlights the dominance of dollar-based stablecoins in AI agent payments, with 98.6% of transactions currently processed using these currencies. HOR warns that South Korea needs to begin discussions on which currencies and infrastructure AI agents will use for payments and settlement before a dollar-centered payment system becomes entrenched. The report also emphasizes the importance of systems capable of verifying AI agents' identities, as this is critical for establishing authority and responsibility in transactions.

HOR suggests that South Korea could gain a competitive edge by linking its electronic signature and real-name financial verification systems with blockchain-based identity technology. This would enable it to establish standards for the AI agent payments market and build a new framework combining digital identity authentication with blockchain.