Analysis questions Open USD's real viability despite 140+ backers; notes Paxos ran identical model in 2024 with only $3B supply and suggests partner list may be inflated.
DeFi & Yields ·
Open Standard announced a dollar-backed stablecoin with more than 140 businesses listed as participants, including Visa, Mastercard, BlackRock, and Samsung Electronics. The project proposes to distribute reserve earnings to participating companies rather than the issuer, and plans to offer unlimited minting and redemption without fees.
However, skepticism surrounds the initiative's viability. A similar model was attempted by Paxos in 2024, reaching only $3 billion in supply compared to USDC's $73 billion and USDT's $145 billion. Additionally, some listed participants have disputed their involvement — Samsung, Shinhan, Dunamu, and K-Bank have indicated they never finalized participation discussions, suggesting the 140-plus count may overstate actual commitment. Industry figures including Circle's CEO and ARK Invest's research director have questioned whether the economics of free, unlimited minting and redemption are sustainable.
South Korea's regulatory environment adds further uncertainty. The country has not yet passed the Digital Asset Basic Act, leaving unresolved questions about who may issue stablecoins and what roles companies can perform. Lawmakers continue debating whether issuance should be limited to banks or opened to other qualified entities, while broader rules governing reserve management and ecosystem participation remain under discussion.