South Korea's stablecoin strategy needs to shift focus from currency issuance to controlling the infrastructure that powers AI agent payments, according to new research that challenges how policymakers think about digital money competition. A report from Hashed Open Research (HOR) released on August 12 found that the real profit and influence in stablecoins flows to companies that control settlement and distribution networks, not to the issuers themselves. This insight reframes South Korea's policy debate around won stablecoins from a simple question of "who issues the currency" to a more complex infrastructure challenge.

What Are Settlement Rails and Why Do They Matter for Stablecoins?

Settlement rails are the underlying systems that process and finalize payments between parties. In traditional finance, banks operate these rails. In the stablecoin world, companies like Circle and Stripe are building their own blockchain-based settlement networks to control how money moves across borders and between users. HOR's research shows that as the stablecoin market matures, control of these networks becomes more valuable than the stablecoin issuance itself. Stripe has acquired multiple blockchain infrastructure companies to strengthen its settlement capabilities, while Circle is building its own blockchain payments network called Arc.

The profit structure explains why. Stablecoin issuers face regulatory pressure and interest-rate risk on their reserve assets, the real-world money backing each stablecoin. They also must share a significant portion of the income generated from those reserves with distribution partners. Settlement network operators, by contrast, capture value from every transaction flowing through their infrastructure without bearing the same regulatory burden.

Why Is the AI Agent Economy Changing the Stablecoin Game?

AI agents are autonomous software programs that can execute transactions on behalf of people or businesses. As this "agent economy" develops, the currency choice for these transactions is becoming entrenched. Currently, about 98.6% of AI agent payments are processed using dollar-based stablecoins, primarily USDC and USDT (Tether). This dominance emerged early in AI development when the US dollar became the default payment method in experimental environments.

HOR warned that if South Korea does not act soon, a dollar-centered payment system for AI agents could become locked in, making it difficult for won stablecoins to compete later. The window to shape these standards is closing. Some South Korean companies are already conducting won-linked asset issuance and pilot projects using overseas infrastructure, foreign blockchains, and dollar-based stablecoins, rather than waiting for domestic frameworks.

What Infrastructure Does South Korea Need to Build?

HOR identified two critical infrastructure components that South Korea must develop to make won stablecoins viable for AI payments. First, the country needs dedicated settlement rails specifically designed for won-based transactions. Second, it needs a system to verify the identity of AI agents and confirm that users have lawfully delegated authority to those agents to transact on their behalf.

The identity verification challenge is particularly important. When an AI agent executes a transaction, there must be a clear record that the user authorized it and a mechanism to establish responsibility if something goes wrong. South Korea has existing strengths in this area. The country operates robust electronic signature systems and real-name financial verification infrastructure that could be adapted for blockchain-based identity technology.

How to Position Won Stablecoins for AI Payments

• Expand policy beyond issuance: South Korea's current policy debate focuses on who will issue won stablecoins and general-purpose payment competition already dominated by the dollar. Policymakers should instead address how reserve-asset income will be allocated, how much bargaining power distribution companies will gain, and how access to settlement networks should be governed.
• Link digital identity to blockchain: South Korea could gain a competitive edge by connecting its electronic signature and real-name financial verification systems with blockchain-based identity technology, creating a trusted framework for AI agent transactions.
• Act before standards lock in: The dominance of dollar stablecoins in AI payments is not inevitable; it reflects early-stage defaults. South Korea must begin serious discussions on which currencies and infrastructure AI agents will use for payments and settlement before a dollar-centered system becomes entrenched.

HOR's analysis suggests that the stablecoin industry's future profitability and influence will concentrate with companies controlling settlement and distribution networks rather than with issuers. This structural shift has profound implications for South Korea's strategy. A won stablecoin issued by a domestic bank but relying on foreign settlement infrastructure would generate limited competitive advantage. Instead, South Korea should aim to build integrated infrastructure that combines won issuance, settlement, and identity verification under a coherent domestic framework.

How Is Institutional Adoption Accelerating Stablecoin Infrastructure?

Beyond South Korea's specific situation, the broader stablecoin market is experiencing a significant institutional shift. Circle, the issuer of USDC, reported that regulatory clarity in multiple jurisdictions has accelerated bank adoption. Four major regulatory developments landed within a six to seven month window: the GENIUS Act in the United States, the Stablecoin Ordinance in Hong Kong, the Payment Services Act in Japan, and MiCA (Markets in Crypto-Assets Regulation) in Europe. These regulations moved major financial institutions from cautious experimentation to direct integration with stablecoin infrastructure.

This institutional momentum is reshaping competition in the stablecoin payments space. Smaller and mid-tier banks, which previously relied on larger institutions to access stablecoin infrastructure, can now compete on a more equal footing by integrating directly with stablecoin networks. Asia has emerged as a proving ground for this shift. The region's fragmented cross-border payment systems and weaker legacy rails create an opening for stablecoins to function as what one industry leader described as "internet rails for moving money," connecting markets that traditional banking infrastructure struggles to serve efficiently.

The convergence of AI agent payments, regulatory clarity, and institutional adoption suggests that the stablecoin market is transitioning from a speculative asset class to critical payment infrastructure. For South Korea, the timing of HOR's report underscores an urgent strategic choice: build domestic settlement infrastructure now, or risk becoming dependent on foreign systems for the next generation of payment technology.