Ondo Finance and Kakaopay Securities have signed a memorandum of understanding (MOU) to explore bringing Korean-listed stocks to international investors through tokenization — the issuance of blockchain-based tokens backed by underlying securities held in custody. The partnership pairs Ondo's global tokenized asset distribution network with Kakaopay Securities' domestic market infrastructure, with the two firms initially considering systems to source, store, and potentially tokenize Korean securities, as detailed in Ondo Finance's official announcement.

Three Areas of Cooperation

Under the MOU, signed on September 28, the companies agreed on three key areas: international distribution of the Korean market's equity offerings, a research program on tokenization infrastructure, and an examination of prospects for the global retail investor. As a memorandum of understanding, the deal establishes a framework for joint exploration rather than an immediate product launch, with commercial decisions dependent on the technical and regulatory work that follows.

The first step concerns the stocks themselves. Kakaopay Securities plans to operate a foreign investor omnibus account — a pooled account structure in which shares acquired for foreign investors are held under a single account in the domestic market — that can be used to source, custody, and administer Korean-listed shares. Such holdings may serve as the support for tokenized equity products in the future. The account structure is intended to ensure that any tokens issued would be backed by shares actually held in the Korean market.

Token Issuance and Redemption Come Next

Ondo and Kakaopay will also explore possible mechanisms for the issuance and redemption of the tokens, as well as the systems needed to ensure that the number of tokens held matches the number of shares held. Technical work will focus on balance management, reconciliation, and executing investors' transitions between tokenized assets and securities.

No Tokens or Timeline Announced Yet

The companies have yet to reveal which Korean stocks might be tokenized first, and they have not announced when they intend to launch commercially. Any rollout will require compliance with securities laws, regulatory guidance, and investor protection requirements in South Korea as well as in the markets where the products might be distributed. Commercial products will await approval in Korea and abroad.

Korean Equities Could Reach a Wider Investor Base

If Korean stocks go onchain, Ondo would bring one of the largest onchain tokenized equities platforms to the arrangement, providing an existing distribution channel, while Kakaopay Securities contributes the local infrastructure needed to handle the underlying securities. The blend could bring more Korean companies into foreign investors' portfolios beyond the traditional brokerage channel.

The deal specifically targets the international retail investor, and a joint task force will review product structures and distribution plans to serve that goal.

Tokenized Stocks Reach a $3.2B Market

The partnership comes at a time of rapid expansion for tokenized equities. By late September 2026, the total distributed value of tokenized stocks stood at approximately $3.2 billion, with the market highly concentrated, mainly in exchange-traded funds and U.S.-listed stocks. Products tied to companies such as Nvidia, Tesla, Circle and Strategy already account for a major share of the industry.

The inclusion of Korean stocks would diversify the geographic spread of tokenization projects — a landscape today concentrated in U.S.-listed products and funds — and give crypto investors worldwide another major stock market through which to gain equity exposure.

Later this year, Ondo and Kakaopay plan to form a joint task force to further refine the custody model, the share-sourcing process, and the tokenized infrastructure before any decision on commercialization is made.

References:

• Ondo Finance announcement: Ondo and Kakaopay Securities partner
• Source: CryptoNinjas