Ondo Finance is partnering with Kakaopay Securities to facilitate the international distribution of exposure to Korean listed equities. As global investor interest in Korean companies continues to grow, the partnership is expected to expand the overseas investor base for Korean equities through the distribution network of the world's largest tokenized equity platform.
The companies signed an MOU at Kakaopay Securities' headquarters in Pangyo on September 28, with key executives from both organizations in attendance, including Chung Inyoung, Executive Vice President of Kakaopay Securities, and Matthieu de Vergnes, Managing Director, Global Head of Institutional at Ondo Finance.
Under the MOU, the companies agreed to pursue three areas of cooperation: building a framework for the international distribution of Korean listed equities, conducting joint research on tokenization infrastructure to support global distribution, and establishing a joint task force to explore business opportunities for overseas retail investors. Through this partnership, Ondo's global distribution capabilities and Kakaopay Securities' domestic equity infrastructure are expected to create synergies that support international growth.
As an initial step, the companies will establish a framework for sourcing and custodying the underlying Korean-listed shares that may serve as the basis for future tokenization. Kakaopay Securities will operate a foreign investor omnibus account to support the sourcing, custody, and administration of the underlying shares, while the companies will jointly research tokenization infrastructure, including token issuance and redemption processes and balance management and reconciliation mechanisms.
The companies will discuss whether and when to commercialize tokenized equity products based on applicable legal and regulatory considerations in domestic and international jurisdictions, supervisory guidance, and investor protection principles.
"Global demand for investment opportunities in Korean companies continues to grow rapidly, yet access channels for overseas retail investors remain limited," said Chung Inyoung, Executive Vice President of Kakaopay Securities. "By connecting the global distribution network of Ondo Finance, the world's largest tokenized equity platform, with Kakaopay Securities' domestic market infrastructure, our goal is to develop the international distribution of Korean equities into a service that works in practice."
"South Korea is one of the most sophisticated digital asset markets in the world, and a critical market for Ondo as we expand access to tokenized financial assets,” said Matthieu de Vergnes, Managing Director, Global Head of Institutional at Ondo Finance. "Together with Kakaopay Securities, we’re bringing tokenized equities and other real-world assets directly into the financial services people already trust and use every day."
As a follow-up to the MOU, the companies plan to establish a joint task force later this year to further develop operational frameworks for share sourcing and custody, and to advance research related to tokenized equity infrastructure.
