Kakaopay Taps Dinari and Ondo to Tokenize Korean Stocks

South Korean Kakaopay Securities is partnering with tokenization firms Dinari and Ondo Finance to explore bringing Korean-listed stocks onchain. The agreements aim to source underlying Korean shares, tokenize them, and distribute them to international investors.

The partnership between Kakaopay and Dinari will run a proof of concept using Dinari's dShares model. This model is designed to preserve applicable shareholder rights, including dividends and voting. Dinari CEO Gabe Otte stated that no specific Korean-listed companies have been selected for the proof of concept.

The proposed model would use locally listed Korean shares as underlying assets rather than tokens tracking their prices, according to Otte. Kakaopay's agreement with Ondo will initially focus on establishing a framework for sourcing and custodying Korean-listed shares that could later be tokenized.

This comes as South Korea prepares to implement a new regulatory framework for 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.