Fake OUSD issuer on the XRP Ledger.

On July 2, XRP Ledger validators flagged a fake issuer account using the Open Standard name, days after the Ripple-backed stablecoin OUSD launched on June 30.

On the XRP Ledger, a token is defined by its currency code and the address that issued it. Two accounts can issue tokens with the same code, so the issuing address is what tells them apart. To hold one, an account opens a trust line to a chosen issuer, and trusting the wrong address means holding a look-alike the project never minted.

The ledger did what it was told. What was missing is proof the address belongs to the project, a two-way check where the issuer names its official site and that site publishes the same address.

On a ledger where anyone can issue a token under any name, a stablecoin is only as safe as its issuing address.