Kakao Pay Securities, U.S.-based Dinari Pursue Proof of Concept for Tokenization of Korean Stocks

[Financial News] Kakao Pay Securities is working with U.S.-based tokenization technology company Dinari to establish the foundation for overseas distribution of Korean-listed stocks. 
Kakao Pay Securities announced on the 29th that it had signed a memorandum of understanding (MOU) with Dinari at its headquarters in Pangyo. 
Under the agreement, the two companies will jointly pursue the development of an overseas distribution system for Korean-listed stocks and a proof of concept (PoC) for stock tokenization. They also plan to establish a joint task force (TF) by the end of the year for a business targeting individual investors overseas, with the aim of specifying how to operate a system for sourcing underlying shares and designing the proof of concept.
Dinari is a U.S. financial infrastructure company that supports the issuance, distribution, and trading of tokenized securities. As a transfer agent registered with the United States Securities and Exchange Commission (SEC), it offers U.S. stocks and exchange-traded funds (ETFs) in tokenized form through its flagship service, dShares. In August, it began supporting stablecoin settlement and dividend payments for approximately 700 U.S. stocks and ETFs in cooperation with Circle Internet Group, the issuer of USD Coin (USDC).
As part of the collaboration, Kakao Pay Securities will establish a foundation for sourcing the underlying shares of Korean-listed stocks through an omnibus account for overseas investors. Based on this foundation, the two companies will verify whether an issuance and redemption structure in which the underlying shares and tokens correspond on a one-to-one basis can be implemented for Korean-listed stocks.
The proof of concept will draw on Dinari's dShares model, which operates in more than 85 countries and regions. The companies will also examine how to manage and reconcile balances between underlying shares and tokens, as well as how to reflect shareholder rights such as dividends and voting rights.
Jung In-young, vice president of Kakao Pay Securities, said, "We are working with Dinari, which has experience operating tokenized securities under the U.S. regulatory framework, to develop a concrete structure for the overseas distribution of Korean stocks. Starting with trading in underlying shares, we will methodically verify the technical feasibility of stock tokenization through a proof of concept and open the way for shares of Korea's leading companies to connect with a broader market." 
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