Open Standard’s announcement of its Open USD stablecoin initiative has sparked debate in South Korea, with several major companies raising objections. Despite being listed as consortium members, some firms have stated they never officially joined the project and only saw their names mentioned after the news spread in local media.
Back-to-back statements from listed companies
On June 30, Open Standard declared that Open USD, a stablecoin pegged to the US dollar, is set for launch in the coming months. The company revealed that over 140 organizations—including financial institutions, payment service providers, tech leaders, and crypto firms—would participate in the venture.
The announcement named international powerhouses such as Visa, Mastercard, BlackRock, and Google, alongside Korean heavyweights like Samsung Electronics, Dunamu, Shinhan Financial Group, KakaoBank, K Bank, Hyundai Card, KB Kookmin Card, BC Card, Hana Card, Samsung Card, Woori Card, NH Nonghyup Card, and Hanwha. However, numerous Korean companies on the list have emphasized that their participation is not finalized.
Samsung Electronics clarified there have been no official talks with Open Standard and that it has no information about any prospective role within the consortium. Dunamu, Shinhan Financial Group, and K Bank issued similar statements distancing themselves from the project.
According to company representatives, they were merely approached to gauge interest in the initiative. While these firms confirmed they might consider the offer, they made it clear that this does not constitute official approval or partnership. The situation has heightened questions about the actual status of several names highlighted in the Open USD announcement.
The structure behind Open USD
Open Standard stated that Open USD is being developed as a utility-focused stablecoin, with management shared by participating companies during the development phase. Importantly, the company stressed that the project would not function as a decentralized autonomous organization (DAO) or use a profit-sharing partnership model.
In the proposed system, participants can mint Open USD tokens by depositing US dollars into a reserve account. Conversely, they can return tokens to the issuing institution to redeem their cash. Open Standard assured that there will be no fees for these transactions and no restrictions on the number of operations that can be performed.
Mini glossary: A stablecoin is a type of digital token typically pegged to an asset like the US dollar. In reserve-backed models, the issuer aims to hold cash or similar assets that match the value of tokens in circulation.
Revenue sharing model stands out
Open Standard explained that its revenue model will be built around profits generated from reserve assets. After deducting operational expenses, earnings from the reserves will be distributed among participating members. This diverges from the Tether and Circle models, where issuers keep reserve-generated income internally.
Industry circles in South Korea see this project as a potential competitor to USDT and USDC. Nonetheless, companies named in the initial announcement stress that the nature of Open USD’s partnerships remains unclear and is yet to be finalized.
