Kakao Pay Securities, Ondo Finance Sign MOU on Cross-Border Distribution of Korean-Listed Stocks

[Financial News] Kakao Pay Securities is working with real-world asset (RWA) tokenization company Ondo Finance to establish a cross-border distribution system for Korean-listed stocks. The plan is to connect domestic stock trading infrastructure with a global tokenized-stock distribution network, making it easier for overseas retail investors to access Korean stocks.
Kakao Pay Securities said on the 29th that the two companies signed a memorandum of understanding at its office in Yeouido, Seoul, on the 28th.
The companies will work together to establish a cross-border distribution system for Korean-listed stocks and conduct joint research on stock tokenization infrastructure. They will also operate a joint task force to pursue business cooperation targeting overseas retail investors.
As a first step, they will establish a system to procure and safeguard the underlying shares of Korean-listed stocks used as the basis for tokenization. Kakao Pay Securities will operate an omnibus account for overseas investors, creating a foundation for securing the underlying shares, while the two companies jointly research token issuance and redemption procedures, balance management, and reconciliation systems.
Tokenized stocks are products issued on the basis of existing stocks and can offer greater flexibility in trading hours and settlement methods. The companies will also review ways to reduce trading restrictions caused by time differences, as well as methods for reflecting shareholder rights such as dividends and voting rights.
However, it has not yet been decided whether the product will be commercialized or when that might occur. Discussions will take into account domestic and international legal reviews, regulatory compliance, the policy direction of supervisory authorities, and investor protection principles.
Ondo Finance has expanded into the stock sector after launching tokenized U.S. Treasury products. According to the company, total value locked (TVL) in its tokenized-stock segment exceeded $1 billion in May, about eight months after the service was launched.
Jeong In-young, vice president of Kakao Pay Securities, said, "Global investment demand for Korean companies is growing rapidly, but avenues for overseas retail investors to access Korean stocks remain limited. Our goal is to connect Ondo Finance's global distribution network with domestic stock infrastructure and turn the cross-border distribution of Korean stocks into an actual service."
[email protected] Joo Won-gyu Reporter