Kakao Pay Securities Partners with Ondo Finance for Overseas Distribution of Korean Listed Stocks

Joint Research on Stock Tokenization and Global Distribution

Kakao Pay Securities announced on the 29th that it will collaborate with Ondo Finance to enable the overseas distribution of Korean listed stocks.

The two companies signed a memorandum of understanding (MOU) at Kakao Pay Securities' Yeouido office the previous day, with key executives in attendance, including Inyoung Jung, Vice President of Kakao Pay Securities, and Matthieu de Vergnes, Global Head of Institutional Business (MD) at Ondo Finance.

On the 28th, executives from KakaoPay Securities and Ondo Finance are taking a commemorative photo at the signing ceremony of the business agreement (MOU) between the two companies. From the left: Jinsu Jung, Head of Trading Product at KakaoPay Securities; Inyoung Jung, Vice President of KakaoPay Securities; Mathieu de Vergne, Global Head of Institutional Business at Ondo Finance; Kunal Patel, Head of Asia and Middle East Institutional Business at Ondo Finance. KakaoPay Securities

At this event, the companies agreed to work together on (1) establishing a system for the overseas distribution of Korean listed stocks, (2) conducting joint research on stock tokenization infrastructure to support global distribution expansion, and (3) operating a joint task force to collaborate on business targeting overseas individual investors.

Through this partnership, the synergy of Ondo Finance’s global distribution network and Kakao Pay Securities’ domestic stock trading infrastructure is expected to accelerate global business expansion. Ondo Finance, which built its presence in the global market through tokenized U.S. Treasury products, is now extending its operations into equities. Last May, the company surpassed USD 1 billion in total value locked (TVL) in the tokenized stock segment just eight months after launching the service. It currently stands as the world’s largest tokenized stock platform based on outstanding issuance.

The companies will first set up a system to procure and safekeep the underlying Korean listed stocks that serve as the basis for tokenization. Kakao Pay Securities will operate an omnibus account for overseas investors to secure the underlying stocks, and both companies will jointly research the infrastructure related to token issuance and redemption procedures, as well as systems for balance management and reconciliation.

Tokenized stocks use traditional stocks as their underlying assets but offer greater flexibility in trading hours and settlement methods, reducing time-zone constraints and enhancing convenience for overseas investors. The companies plan to explore and review a wide range of methods to reflect shareholder rights such as dividends and voting rights, aiming to develop strategies for expanding the distribution infrastructure so Korean stocks can be traded smoothly in global markets.

As a follow-up to the MOU, the two companies plan to establish a joint task force within the year to concretize detailed action plans for operating a system to procure and safekeep underlying stocks and for researching tokenization infrastructure.

The decision on whether and when to commercialize tokenized stocks will be discussed based on results from domestic and international legal reviews, compliance with regulatory principles, the policy direction of supervisory authorities, and the overarching principle of investor protection.

Matthieu de Vergnes, Global Head of Institutional Business at Ondo Finance, stated, "Korea is one of the most mature digital asset markets in the world, making it a highly important market for Ondo Finance as we expand access to tokenized financial assets. We are excited to lay the groundwork along with Kakao Pay Securities for making tokenized stocks and real-world assets accessible and trusted within everyday financial services for investors."

Inyoung Jung, Vice President of Kakao Pay Securities, said, "While global investment demand for Korean companies is rising rapidly, the channels for overseas individual investors to access Korean stocks remain limited. By connecting the world’s largest tokenized stock distribution network of Ondo Finance with Kakao Pay Securities’ domestic stock infrastructure, our goal is to create a new, operational market for the overseas distribution of Korean stocks."

This content was produced with the assistance of AI translation services.