Kakaopay Securities is working with Dinari and Ondo Finance to study how Korean-listed stocks could move onchain and be distributed to investors in overseas markets.
The South Korean brokerage announced separate agreements with Dinari and Ondo on Tuesday. The deals cover sourcing the underlying Korean shares, building tokenization infrastructure and exploring possible distribution outside South Korea.
Dinari partnership centers on a dShares proof of concept
Under the Dinari agreement, the companies will run a proof of concept using Dinari’s dShares model. The structure is designed to preserve applicable shareholder rights, including dividends and voting rights.
Dinari currently offers 724 tokenized US stocks and exchange-traded funds through dShares. The Kakaopay partnership is examining whether that model can be extended to Korean-listed equities.
Dinari CEO Gabe Otte told Cointelegraph that the companies have not selected any specific Korean-listed firms for the proof of concept. He also said there is no public timeline yet for commercial availability. The proposed structure would use locally listed Korean shares as the underlying assets, rather than tokens that only mirror share prices.
Ondo agreement starts with sourcing and custody framework
Kakaopay’s agreement with Ondo will initially focus on creating a framework to source and custody Korean-listed shares that could later be tokenized. Kakaopay would operate a foreign investor omnibus account to hold and administer the underlying shares.
Ondo and Kakaopay will also study token issuance and redemption. The companies said any decision on whether, or when, to commercialize tokenized Korean equities will depend on legal and regulatory requirements in South Korea and in overseas markets.
South Korea is moving toward tokenized securities rules
The partnerships arrive as South Korea prepares a new regulatory framework for tokenized securities. In January, the National Assembly approved amendments that recognize distributed ledgers as valid securities registries and allow the issuance and circulation of token securities.
In June, the Financial Services Commission tied token securities infrastructure to a broader overhaul of the country’s capital markets. The framework is scheduled to take effect in February 2027. The Korea Securities Depository is also developing infrastructure to connect its existing securities account system with blockchain-based data.
Tokenized stock market remains concentrated in US names
Asked about demand for tokenized stocks in South Korea, Otte told Cointelegraph that tokenized stocks have surged in 2026. According to RWA.xyz, they reached about $3.2 billion in distributed value as of late September.
Even so, the market remains heavily concentrated in tokenized versions of US equities and ETFs, including shares of Strategy, Circle, Nvidia and Tesla, along with major US stock ETFs.