Kakaopay partners with Dinari, Ondo to explore tokenized Korean stocks

Kakaopay Securities is collaborating with Dinari and Ondo Finance to investigate tokenizing Korean-listed equities and expanding their accessibility to overseas investors. The South Korean brokerage firm has signed agreements with both Dinari and Ondo Finance on Tuesday, outlining the sourcing of genuine Korean shares, the implementation of tokenization infrastructure, and the potential distribution of these tokenized assets beyond South Korea.

In their partnership with Dinari, Kakaopay Securities will execute a proof of concept utilizing Dinari's dShares model, which aims to maintain shareholder rights, including dividend distribution and voting privileges. Dinari currently provides tokenized US stocks and ETFs, numbering 724, through its dShares platform. However, the Kakaopay-Dinari collaboration is exploring the possibility of extending this model to Korean-listed equities.

Dinari's CEO, Gabe Otte, stated that no particular Korean-listed companies have been chosen for the proof of concept, and the company has not revealed a public timeline for the commercial availability of these tokenized shares.

According to Otte, the proposed model would utilize actual Korean shares as the underlying assets rather than merely tokenized representations of their prices. Meanwhile, Kakaopay's agreement with Ondo will initially concentrate on establishing a framework for sourcing and safeguarding Korean-listed shares that could subsequently be tokenized.

The companies will also explore token issuance and redemption processes. The decision to commercialize tokenized Korean equities will be contingent upon satisfying legal and regulatory prerequisites in South Korea and overseas markets.