Key Highlights
- KakaoPay and Ondo are exploring a framework for tokenizing Korean-listed shares using the underlying stocks rather than price-tracking tokens.
- Dinari CEO Gabe Otte said no Korean-listed companies have been selected for the proof of concept, and no public commercial launch timeline has been set.
- South Korea’s tokenized-securities framework is scheduled to take effect in February 2027 as institutional interest in blockchain-based capital markets grows.
KakaoPay and Ondo Explore Tokenized Korean Equities
KakaoPay and Ondo have agreed to examine the infrastructure needed to source and custody Korean-listed shares that could eventually be tokenized. Under the proposed model, the tokenized instruments would be backed by locally listed Korean shares rather than by tokens that merely track the shares’ prices.
KakaoPay would operate a foreign investor omnibus account to hold and administer the underlying securities. The companies also plan to research how tokenized Korean equities could be issued and redeemed. Any decision to commercialize the products, and the timing of such a launch, will depend on legal and regulatory requirements in South Korea and the overseas markets involved.
Dinari Says Proof of Concept Details Remain Undecided
Dinari CEO Gabe Otte told Cointelegraph that no specific Korean-listed companies have yet been selected for the proof of concept. Dinari also has not established a public timeline for making the proposed products commercially available.
Asked about demand for tokenized stocks in South Korea, Otte told Cointelegraph:
We’re seeing meaningful institutional interest in South Korea, particularly around tokenization as infrastructure for connecting Korean capital markets with global investors… The opportunity isn’t simply to create tokenized versions of Korean equities, but to build infrastructure that can ultimately expand how those equities are distributed internationally while preserving the rights and protections of the underlying securities.
South Korea Builds a Framework for Tokenized Securities
The KakaoPay and Ondo agreement comes as South Korea prepares to introduce a new regulatory framework for tokenized securities. The National Assembly approved amendments in January recognizing distributed ledgers as valid securities registries and allowing token securities to be issued and circulated.
In June, the Financial Services Commission connected the development of token-securities infrastructure with a broader reform of South Korea’s capital markets. The framework is scheduled to take effect in February 2027. Meanwhile, the Korea Securities Depository is developing infrastructure designed to connect its existing securities-account system with blockchain-based data.
Tokenized Stock Market Remains Concentrated in US Assets
Tokenized stocks grew sharply in 2026, reaching approximately $3.2 billion in distributed value by late September, according to RWA.xyz. Despite that growth, the market remains concentrated in tokenized versions of US equities and exchange-traded funds.
Examples include shares in Strategy, Circle, Nvidia and Tesla, as well as major US stock ETFs. The proposed Korean model would therefore address a market segment that remains less developed: blockchain-based access to locally listed Korean securities while maintaining the rights and protections associated with the underlying shares.
Why This Matters
The proposed KakaoPay-Ondo initiative is significant because it links tokenization with the custody, issuance and redemption of actual securities rather than with synthetic exposure to share prices. Its progress will depend on regulatory approval in South Korea and in any overseas markets where the tokenized products might be offered.
South Korea’s planned February 2027 framework, along with the Korea Securities Depository’s blockchain connectivity work, could provide the institutional infrastructure needed for such products. For now, however, the specific companies included in the proof of concept and the timeline for commercial availability remain undecided.
Frequently Asked Questions
Which companies are exploring tokenized Korean equities?
KakaoPay and Ondo are researching a framework for sourcing, custodying, issuing and redeeming tokenized Korean-listed shares. Dinari CEO Gabe Otte also discussed institutional interest in the South Korean market.
Have the Korean companies for the proof of concept been selected?
No. Gabe Otte said that no specific Korean-listed companies have been selected for the proof of concept.
When could tokenized Korean equities become commercially available?
No public commercial launch timeline has been set. Commercialization will depend on legal and regulatory requirements in South Korea and overseas markets.