South Korean crypto exchange Upbit denied participating in the issuance of Open USD after its operator Dunamu was listed among more than 140 businesses involved in the new dollar-backed stablecoin initiative announced on Tuesday. The exchange said its involvement had been overstated and framed its position as limited to possible future participation in the broader OpenStandard ecosystem, with a spokesperson stating Upbit has only indicated potential willingness to consider taking part in future expansion. The clarification followed Open Standard's announcement that more than 140 businesses including Visa, Mastercard, BlackRock, Google, Samsung Electronics and Dunamu had signed up to use the stablecoin. The pushback highlights questions about whether Open USD's partner list reflects firm commercial commitments or preliminary expressions of interest, a distinction that matters for stablecoin credibility which depends on distribution, redemption access, and institutional trust in digital asset markets.
Samsung Electronics and Korean Financial Firms Challenge Participation Claims
Samsung Electronics reportedly said it had not held formal discussions with the project and did not know what role it was expected to perform. Shinhan Financial Group and KBank also reportedly said they had only indicated that they would consider the initiative. The distinction is important for banks and large technology companies because stablecoin participation can trigger regulatory, compliance, custody, reserve, payments, and reputational questions. Open Standard previously said businesses would be able to mint and redeem OUSD without fees or volume limits and plans to distribute earnings generated from its reserves to participating companies.
Circle CEO Questions Open USD Free Minting Model
Circle CEO Jeremy Allaire questioned the sustainability of offering free and unlimited minting and redemption. Lorenzo Valente, director of research at ARK Invest, described the announcement as a large letter of intent, suggesting that the project's early partner list may not yet represent operational adoption. Open USD's proposed model combines free, unlimited minting and redemption with a plan to share reserve-generated earnings with participating companies, differing from many stablecoin models where issuers typically earn income from reserves and may charge or restrict certain services.
South Korea's Pending Digital Asset Legislation Creates Uncertainty
South Korea has not yet passed the Digital Asset Basic Act, leaving unresolved questions over who may issue stablecoins and what roles financial institutions, exchanges, and non-bank companies can perform. Lawmakers have debated whether stablecoin issuance should be limited to banks or opened to qualified non-bank issuers. Until those rules are finalized, South Korean firms face uncertainty over issuance rights, reserve management, redemption obligations, and participation in overseas stablecoin ecosystems. For exchanges such as Upbit, supporting a stablecoin ecosystem could involve listing, custody, liquidity, user access, compliance monitoring, or technical integration, with each role carrying a different regulatory profile.
FAQ
What did Upbit say about its involvement in Open USD?
Upbit said it is not participating in the issuance of Open USD and that its involvement had been overstated. An Upbit spokesperson stated the exchange has only indicated potential willingness to consider taking part in the future expansion of the OpenStandard ecosystem.
Which other South Korean companies pushed back on Open USD participation claims?
Samsung Electronics reportedly said it had not held formal discussions with the project and did not know what role it was expected to perform. Shinhan Financial Group and KBank also reportedly said they had only indicated that they would consider the initiative.
What regulatory uncertainty affects South Korean companies' stablecoin participation?
South Korea has not yet passed the Digital Asset Basic Act, leaving unresolved questions over who may issue stablecoins and what roles financial institutions, exchanges, and non-bank companies can perform. Lawmakers have debated whether stablecoin issuance should be limited to banks or opened to qualified non-bank issuers.
