Samsung and Korean Firms Disavow Open USD Stablecoin Association

Samsung Electronics and several key South Korean financial institutions have denied any formal association with Open USD, a newly launched dollar-pegged stablecoin that claimed to have over 140 corporate partners. This response raises questions about the validity of one of the largest partner listings in the stablecoin industry.

Allegations of Misrepresentation

Reported by Chosun Biz on July 3, the denial from these companies comes shortly after Open Standard announced the launch of Open USD (OUSD) on June 30. The firm promoted benefits such as fee-free minting and shared reserve income for its partners. The standout names on its partner roster included Visa, Mastercard, Stripe, BlackRock, and Coinbase.

Alongside these global giants, 13 South Korean firms were mentioned as partners, including Samsung Electronics, Dunamu, Shinhan Financial Group, K Bank, and seven credit card issuers. However, within days, a minimum of four of these firms distanced themselves from the claims.

Responses from Korean Firms

A Samsung Electronics official stated to local media that there had been no formal consultations on the role they would play in the consortium, leading to confusion regarding their inclusion. Other firms like Shinhan, Dunamu, and K Bank also indicated that while they had been approached by Open Standard about potential participation, their names were listed without their agreement.

Another listed company expressed its surprise at being included, noting they learned about their supposed membership through media reports rather than direct communication.

Historical Context and Market Impact

This situation mirrors a previous debacle involving Facebook’s Libra consortium, which launched in 2019 with 28 founding members but lost major partners like Visa, Mastercard, and Stripe within four months. Libra's struggle ultimately led to its rebranding as Diem and the sale of its assets in 2022.

The stakes for Open USD are significant; following its announcement, Circle's stock experienced a 17% decline. Furthermore, Tether (USDT) and USD Coin (USDC) dominate over 80% of a market valued at approximately $311 billion, according to data from DefiLlama.

Despite the backlash, certain partnerships appear more solidified. Will Gaybrick, President of Stripe Technology, confirmed that OUSD will serve as the default stablecoin for businesses utilizing their platform, following Stripe’s recent $1.1 billion acquisition of Bridge, another stablecoin firm connected to Open Standard.

Circle continues to expand its institutional USDC distribution, with Standard Chartered increasing access to USDC in Dubai. The situation surrounding OUSD remains under scrutiny as further developments unfold.