Key Points:
- Kakaopay Securities has partnered with Dinari and Ondo Finance to explore bringing Korean-listed equities onchain and making them available to international investors.
- The Dinari partnership will test a proof of concept using dShares, while the Ondo agreement will examine share sourcing, custody, token issuance and redemption.
- The initiatives come ahead of South Korea’s planned February 2027 framework for tokenized securities and as the global tokenized-stock market expands.
Kakaopay Explores Onchain Korean Equities
South Korean financial company Kakaopay Securities is working with tokenization firms Dinari and Ondo Finance to explore bringing Korean-listed stocks onto blockchain networks and expanding their distribution to investors outside the country.
Kakaopay announced separate agreements with the two companies covering the sourcing and custody of underlying Korean shares, tokenization infrastructure and potential international distribution.
The partnerships are still at the research and proof-of-concept stage, with commercial availability dependent on regulatory and legal requirements in South Korea and overseas markets.
Dinari to Test dShares Model
Under the agreement with Dinari, Kakaopay Securities and the tokenization company will conduct a proof of concept using Dinari’s dShares model.
The system is designed to use underlying securities rather than simply creating tokens that track stock prices. The model is also designed to preserve applicable shareholder rights, including dividends and voting.
Dinari currently offers 724 tokenized US stocks and exchange-traded funds through its dShares platform. The Kakaopay partnership would explore extending that model to Korean-listed equities.
Dinari CEO Gabe Otte said no specific Korean-listed companies have yet been selected for the proof of concept, and the companies have not established a public timetable for commercial availability.
The proposed structure would use locally listed Korean shares as the underlying assets for the tokenized instruments.
Ondo Partnership Focuses on Share Infrastructure
Kakaopay’s separate partnership with Ondo Finance initially focuses on establishing the infrastructure required to source and custody Korean-listed shares that could eventually be tokenized.
Under the proposed arrangement, Kakaopay would operate a foreign-investor omnibus account to hold and administer the underlying securities.
Kakaopay and Ondo will also research mechanisms for issuing and redeeming the corresponding tokenized assets.
The companies said any decision to commercialize tokenized Korean equities will depend on applicable legal and regulatory requirements in South Korea and other jurisdictions where the products could be distributed.
South Korea Prepares Tokenized Securities Framework
The partnerships arrive as South Korea develops a regulatory framework specifically covering tokenized securities.
The country’s National Assembly approved amendments in January recognizing distributed ledgers as valid securities registries and permitting the issuance and circulation of token securities.
In June, the Financial Services Commission connected the development of tokenized-securities infrastructure with a broader overhaul of South Korea’s capital markets.
The framework is scheduled to take effect in February 2027, while the Korea Securities Depository is developing infrastructure intended to connect its existing securities-account system with blockchain-based data.
The regulatory changes could provide a clearer framework for financial institutions exploring blockchain-based securities infrastructure.
Tokenized Stocks Expand Globally
The Kakaopay partnerships also come as tokenized equities gain traction internationally.
According to RWA.xyz data cited in the source article, tokenized stocks had reached approximately $3.2 billion in distributed value by late September 2026.
The market remains concentrated largely in tokenized versions of US stocks and exchange-traded funds, including companies such as Strategy, Circle, Nvidia and Tesla, alongside major US equity ETFs.
The potential tokenization of Korean-listed securities would broaden the range of markets represented in the sector and could create a blockchain-based channel for connecting domestic securities with international investors.
International Distribution Remains a Key Question
The proposed projects are not simply focused on creating blockchain representations of Korean stocks. The partnerships also examine how those assets could be distributed internationally while maintaining the rights associated with the underlying securities.
That distinction could become important as tokenized securities move from experimental products toward regulated financial infrastructure.
For Kakaopay Securities, the projects could provide an opportunity to explore how Korean capital markets interact with global blockchain-based settlement and distribution systems.
Outlook
Kakaopay Securities’ agreements with Dinari and Ondo Finance mark an early-stage effort to explore tokenized Korean equities and international distribution. The projects remain subject to legal and regulatory requirements, while South Korea’s February 2027 tokenized-securities framework could provide a more defined environment for future commercialization. The initiatives also illustrate how tokenization is expanding beyond US equities toward broader access to global capital markets.
Category: Blockchain
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