Kakao Pay Securities eyes global push with tokenized stocks

Dinari, Ondo partnerships explore overseas distribution, with launches subject to regulatory, technical reviews

Kakao Pay Securities is teaming up with US-based Dinari and Ondo Finance to explore offering tokenized Korean stocks to overseas investors, potentially opening a new channel into the country’s equity market.

The brokerage signed memorandums of understanding with Dinari on Tuesday and Ondo Finance on Monday. The agreements cover sourcing Korean-listed shares, distributing them overseas and developing systems to issue and manage blockchain-based tokens linked to the stocks.

Commercial launches remain subject to technical assessments, regulatory requirements and investor protection rules in Korea and overseas.

With Dinari, Kakao Pay Securities will test whether its dShares model — in which each token is backed one-to-one by an underlying share — can be applied to Korean equities.

The work will cover sourcing shares, issuing and redeeming tokens, reconciling holdings and determining how dividends and voting rights would be handled.

Dinari offers tokenized US stocks and exchange-traded funds through dShares. The company says its tokenized securities infrastructure serves more than 85 countries and regions.

The Ondo partnership will initially focus on sourcing and holding Korean shares for overseas investors. Kakao Pay Securities will operate a foreign investor omnibus account, which pools multiple investors’ holdings in a single account.

The partners will also study token issuance and redemption, balance reconciliation and the treatment of shareholder rights.

Ondo expanded into tokenized equities after developing tokenized US Treasury products. Its equity platform exceeded $1 billion in total value locked in May, about eight months after launch, according to the company.

Both partnerships call for joint task forces later this year to develop operating plans and explore services for overseas retail investors.

The companies said tokenization could enable more flexible trading hours and settlement, easing time-zone barriers. Kakao Pay Securities aims to connect its Korean stock market infrastructure with the partners’ global distribution networks.