- Ondo Finance and Kakaopay Securities are exploring global access to South Korean stocks through tokenization.
- The partnership will focus on infrastructure, research, and regulatory requirements.
Ondo Finance has partnered with Kakaopay Securities to explore ways of giving international investors greater access to shares of companies listed in South Korea. The two companies signed a memorandum of understanding (MOU) covering global distribution, equity tokenization research, and potential access for retail investors.
The partnership brings together Ondo Finance’s global distribution network and Kakaopay Securities’ infrastructure in the Korean market. It also marks another step toward connecting traditional equities with blockchain-based financial infrastructure.
Ondo Finance and Kakaopay Securities Sign MOU
The agreement was signed at Kakaopay Securities’ headquarters in Pangyo, South Korea. Chung Inyoung, executive vice president of Kakaopay Securities, and Matthieu de Vergnes, managing director and global head of institutional at Ondo Finance, were present for the signing.
Under the agreement, the companies will focus on three main areas.
First, they will work on creating a framework for the international distribution of Korean equities. This could make it easier for investors outside South Korea to gain exposure to companies listed on the country’s stock exchanges.
Second, Ondo Finance and Kakaopay Securities will conduct joint research into infrastructure for tokenized assets. This includes examining how traditional shares could potentially be represented and managed through tokenized products.
The companies will also establish a working group to explore ways of providing access to Korean equities for retail investors outside the country.
Kakaopay Securities to Handle Underlying Shares
As an initial step, Kakaopay Securities will operate an omnibus account for foreign investors.
The account will be used for the custody and administration of the underlying Korean shares. Meanwhile, both companies will examine the technical and operational processes required for token issuance, redemption, and reconciliation.
This structure could provide the foundation for future tokenized equity products while keeping the underlying shares within existing financial market infrastructure.
However, the companies have not announced a commercial launch of tokenized Korean equities.
Tokenized Korean Stocks Still Depend on Regulation
Ondo Finance and Kakaopay Securities said any decision to commercialize tokenized equity products will depend on regulatory requirements in South Korea and other relevant jurisdictions.
This means the partnership does not yet represent the launch of a tokenized Korean stock product. Instead, the two companies are currently working on the infrastructure, research, and framework that could support such products in the future.
Regulatory approval will therefore remain an important factor before any tokenized equity offering can reach international investors.
Ondo Finance Expands Its Tokenization Push
The partnership adds to Ondo Finance’s broader focus on bringing traditional financial assets onto blockchain-based infrastructure.
By working with Kakaopay Securities, Ondo gains access to local market infrastructure and expertise in Korean equities. Kakaopay Securities, meanwhile, gains access to Ondo Finance’s international distribution network and experience in tokenized real-world assets.
The collaboration could eventually create new ways for overseas investors to access Korean-listed companies if the required regulatory and operational frameworks are established.
For now, the MOU focuses on building the foundation for that potential market rather than launching a finished investment product.
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