Ripple-backed OUSD launch hit by fake issuer scam on XRP Ledger

The launch of the Ripple-backed Open USD (OUSD) stablecoin has been overshadowed by a suspected fake issuer account that XRP Ledger validators have warned users not to trust.

Validators say the listed OUSD issuer cannot be verified

According to XRP Ledger validator operator GrimmReaper, a transaction-monitoring tool connected to his validator recently detected a newly activated issuer using the “Open Standard” name on the XRP Ledger, prompting him to investigate whether it was linked to the newly launched OUSD stablecoin.

GrimmReaper shared a screenshot from Bithomp showing the account, which included the website joinopenstandard.netlify.app and a recently activated XRP Ledger address.

Posting the image on X, he asked fellow XRPL validators Krippenreiter and Vet whether the issuer appeared legitimate. He later explained that his monitoring software tracks incoming validator transactions and automatically flags newly created token issuers using specific names.

The account also displayed advertisements such as “Earn 12% on XRP” and “Play Slots and win 70,000 XRP.” While those ads are not issued by the account itself, they appeared alongside the Bithomp page shown in GrimmReaper’s screenshot and were highlighted as common themes frequently associated with cryptocurrency scams.

Responding to the post, XRPL dUNL validator Vet urged users to assume the issuer was fraudulent until official confirmation was provided by the Open USD project.

According to Vet, a legitimate token issuer should provide what he described as a “2 way pointer,” where the issuer address links to the project’s official website and the project independently publishes the same issuer address. Vet said those verification steps were absent in this case, adding that users should not trust any issuer without confirmation from both sides.

The warning comes as the XRP Ledger community is already discussing issues reported after the rollout of the network’s v3.2.0 upgrade, with validators continuing to monitor suspicious activity across the ecosystem.

OUSD enters a competitive stablecoin market

Open Standard officially launched the OUSD stablecoin on June 30, introducing a revenue-sharing model backed by more than 140 companies. The consortium includes Ripple, Visa, Mastercard, BNY, Standard Chartered, BlackRock, Google, Shopify, Coinbase and Solana.

According to the consortium, OUSD allows businesses to mint and redeem the stablecoin without fees or minimum volume requirements. It also plans to distribute reserve-generated income to participating partners after deducting a management fee, while governance responsibilities will be shared across consortium members.

Ripple’s participation as a founding member has drawn attention from the XRP community, making the project a high-profile target for impersonation attempts shortly after launch.

The stablecoin’s debut has also influenced financial markets. Circle Internet Group shares fell more than 17% on July 1 after investors reacted to the launch of OUSD and its revenue-sharing model, which introduces another institutional-focused competitor in the stablecoin sector.

Circle Chief Executive Officer Jeremy Allaire dismissed suggestions that OUSD poses a major threat to USDC, saying the stablecoin market is large enough to support multiple successful issuers. Still, the decline in Circle’s share price indicated that investors are closely watching how new distribution and revenue-sharing structures could affect competition as stablecoin adoption continues to expand.