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🇰🇷 South Korea /Economy & Trade

Stablecoin world map being redrawn

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

Analysis Sources not specified Context piece
  • Global stablecoin maps are being redrawn with the launch of "OpenUSD," a dollar stablecoin project involving over 140 companies, including major players like Visa and Mastercard.
  • Unlike existing stablecoins, OpenUSD will not monopolize reserve assets but will share them among participating companies, aiming to challenge dominant players like Tether and Circle.
  • Korean companies, including Samsung Electronics and Kakao Bank, are participating in OpenUSD, while several Korean banks are also involved in the "Pangaea Project" in Europe, focusing on direct links between the Korean won and the euro.

The global landscape of stablecoins is undergoing a significant shift with the recent announcement of "OpenUSD," a new dollar stablecoin project backed by a consortium of over 140 companies. This initiative, which includes tech giants like Visa, Mastercard, Stripe, BlackRock, and Google, aims to challenge the dominance of existing stablecoins such as Tether (USDT) and Circle (USDC), which currently control over 80% of the market.

The most eye-catching is the dollar stablecoin 'OpenUSD' project announced on the 30th by about 140 companies, including Visa, Mastercard, Stripe, BlackRock, and Google.

— The ArticleIntroducing the new OpenUSD stablecoin project.

A key differentiator for OpenUSD is its approach to reserve assets. Instead of concentrating reserves, the project plans to share them among all participating companies. This collaborative model signals a strong intent to disrupt the market and capture a significant share.

The difference of OpenUSD is the declaration that it will share the issuance reserve with all participating companies, not monopolize it like Tether or Circle.

— The ArticleHighlighting the unique feature of OpenUSD's reserve management.

Notably, 13 South Korean companies, including Samsung Electronics, Shinhan Financial, Dunamu, Hanwha Life, Kakao Bank, and K Bank, are part of the OpenUSD consortium. This participation could prove to be a strategically wise move if the stablecoin achieves success. Furthermore, several Korean banks, such as KB Kookmin, Shinhan, Woori, and Jeonbuk Bank, are collaborating with European entities on the "Pangaea Project." This project focuses on experimenting with direct connections between the Korean won and the euro stablecoins, a move that gains significance as Europe implements its comprehensive cryptocurrency regulation (MiCA).

If the dollar stablecoin's success continues to bring benefits, it could be recorded as a very wise decision in the future.

— The ArticleSpeculating on the potential success of Korean companies' involvement in OpenUSD.

The global race to establish stablecoin infrastructure is intensifying, with countries like Japan and the UK also making strides. Japan's major banks are working towards issuing a yen stablecoin by fiscal year 2026, with some also participating in OpenUSD. The UK is adopting a more flexible regulatory approach to attract issuers, while Hong Kong has already issued stablecoin licenses. Even Russia and Iran are exploring their own non-dollar stablecoins, indicating a broader trend towards diversifying digital currency options beyond the U.S. dollar.

In particular, Europe is actively working to distinguish between good and bad stablecoins as cryptocurrency regulation (MiCA) fully takes effect on July 1.

— The ArticleContextualizing the Pangaea Project within European regulatory changes.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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