Kakao Pay Securities, Ondo Finance Team Up to Expand Overseas Distribution of Korean Listed Stocks

Kakao Pay Securities said on Sept. 29 that it signed a memorandum of understanding with Ondo Finance to pursue overseas distribution of Korean listed stocks. Through the agreement, the companies aim to broaden access to Korean equities through the distribution network of a global tokenized-stock platform.

At the signing ceremony at their Yeouido office, key executives from both companies attended, including Kakao Pay Securities Vice President Jung In-young and Matthieu de Vienne, global head of institutional business at Ondo Finance. The two companies agreed to build a framework for overseas distribution of Korean listed stocks, jointly study tokenization infrastructure to support broader global distribution, and operate a joint task force for business cooperation targeting overseas retail investors.

Ondo Finance has expanded into equities after establishing a presence in the global market with tokenized U.S. Treasury products. In May, its tokenized-stock business surpassed $1 billion in total value locked about eight months after launch.

The two companies plan to first build a system to source and custody the underlying shares of Korean listed companies that would back tokenized stocks. Kakao Pay Securities will operate an omnibus account for overseas investors to lay the groundwork for securing the underlying shares. The companies will also jointly study tokenization infrastructure, including token issuance and redemption procedures, as well as balance management and reconciliation systems.

Tokenized stocks can make trading hours and settlement methods more flexible than in conventional equity trading. That could ease constraints created by time-zone differences and improve trading convenience for overseas investors. The two firms also plan to broadly examine how shareholder rights such as dividends and voting rights would be reflected, while studying ways to expand the distribution base needed for Korean stocks to trade smoothly in global markets. Whether and when tokenized-stock products are commercialized will be discussed based on domestic and overseas legal reviews, regulatory compliance principles, the policy direction of supervisory authorities, and investor-protection principles.

Matthieu de Vienne, Ondo Finance's global managing director, said South Korea is one of the world's most mature digital-asset markets and a very important market for the company. He added that he expects the partnership with Kakao Pay Securities to help build a foundation linking tokenized stocks and real-world assets with financial services that investors can trust and use in their daily lives.

Jung said global demand for investment in Korean companies is growing rapidly, but channels for overseas retail investors to access Korean stocks remain limited. He said the goal is to connect Ondo Finance's global distribution network with Kakao Pay Securities' domestic equity infrastructure and turn overseas distribution of Korean stocks into a functioning service.