Key Takeaways:
- Samsung, Dunamu, Shinhan, and KBank denied formal roles in the Open USD alliance
- Open Standard listed 140-plus partners including Visa, BlackRock, and Google
- South Korea's unclear stablecoin rules complicate corporate participation
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Open USD credibility tested as 4 Korean partners deny formal role
Four South Korean companies, including Samsung Electronics and Shinhan Financial Group, denied having a formal role in the Open USD stablecoin alliance after Open Standard listed them among more than 140 partners on June 30.
"Samsung Electronics said there had been no official consultations, while Shinhan Financial Group, Dunamu and KBank said they had only agreed to consider the proposal after being contacted by the project," Chosun Biz reported Friday.
Open Standard, led by Bridge co-founder Zach Abrams, unveiled the dollar-backed stablecoin with backing from financial heavyweights including BlackRock, Visa, Stripe, Google, Coinbase and DBS. The project said participants could mint and redeem OUSD without fees while receiving most income generated from reserve assets, with governance handled by an independent company.
The denials raise questions about the accuracy of Open Standard's partnership list and could undermine the alliance's credibility before its planned launch later this year. Circle Chief Executive Officer Jeremy Allaire questioned the sustainability of offering free, unlimited minting and redemption, while Lorenzo Valente, director of research at ARK Invest, called the announcement a "giant" letter of intent.
South Korea has yet to pass the Digital Asset Basic Act, leaving questions over who may issue stablecoins and what roles companies can perform. Lawmakers have debated whether issuance should be limited to banks or opened to qualified non-bank issuers, while the broader regulatory framework remains under discussion, according to the report.
The regulatory vacuum makes it difficult for South Korean companies to commit to stablecoin initiatives, as the rules governing issuance, reserve management and participation in stablecoin ecosystems have yet to be finalized.
Open Standard plans to launch OUSD later this year. The project said participating businesses would be able to mint and redeem the stablecoin without fees or volume limits, with earnings from its reserves distributed to participants. The alliance's ability to retain its listed Korean partners will depend on how South Korea's forthcoming digital asset legislation treats stablecoin issuance and corporate participation.
This article is for informational purposes only and does not constitute investment advice.
