Kakaopay partners with Dinari and Ondo to explore tokenized Korean stocks
South Korea’s Kakaopay Securities has entered into separate partnerships with tokenization firms Dinari and Ondo Finance to explore the onchain representation of Korean-listed stocks and their distribution to investors abroad. These collaborations aim to develop blockchain-based infrastructure to tokenize Korean shares while preserving shareholder rights, alongside frameworks for custody and legal compliance to enable broader market access for tokenized equities.
Partnerships and Tokenization Technical Details
Kakaopay Securities announced two distinct agreements with Dinari and Ondo Finance, aimed at exploring the tokenization of Korean-listed stocks. The partnership with Dinari involves a proof of concept utilizing their dShares model, which is designed to preserve shareholder rights such as dividends and voting. Dinari currently offers 724 tokenized US stocks and ETFs through dShares, and the collaboration seeks to extend this model to Korean equities.
Dinari’s CEO, Gabe Otte, told Cointelegraph that no specific Korean companies have yet been selected for the pilot, and no public timeline for commercial launch has been announced. A key feature is that the tokens will be backed by locally listed Korean shares as underlying assets rather than just price-tracking tokens or derivatives.
Ondo Finance’s Role in Custody and Management
The agreement with Ondo Finance focuses on establishing a framework to source and custody Korean-listed shares potentially to be tokenized in the future. Kakaopay will operate a foreign investor omnibus account to hold and manage the underlying stock.
The companies will also research issuance and redemption processes for tokens, noting that commercial decisions will depend on regulatory compliance both in South Korea and abroad.
South Korea's Regulatory Landscape and Market Outlook
In January, South Korea’s National Assembly approved amendments recognizing distributed ledger technology as a valid securities registry, permitting issuance and circulation of tokenized securities.
In June, the Financial Services Commission linked token securities infrastructure development to a larger capital markets reform effort. The regulatory framework is set to take effect by February 2027, while the Korea Securities Depository is working on infrastructure connecting traditional securities accounts to blockchain-based data.
Gabe Otte pointed out that while tokenized stocks surged to about $3.2 billion in distributed value by late 2026, the market still heavily concentrates on tokenized US equities and ETFs including Strategy, Circle, Nvidia, and Tesla shares.
Why it matters
This news highlights how prominent South Korean firms are proactively preparing for the country’s new regulatory framework on tokenized securities. Kakaopay’s partnerships with Dinari and Ondo illustrate concrete efforts to implement tokenization preserving shareholder rights and developing custody infrastructure for international investors. This initiative could set a precedent for increasing access to Korean capital markets and integrating traditional securities with blockchain technology, laying the groundwork ahead of the regulatory reforms scheduled for 2027.
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