Dinari Inc. and Kakaopay Securities are exploring a plan to tokenize shares listed in South Korea and distribute them to overseas markets, including the United States, through a structure designed to keep each digital token linked one-to-one with an underlying Korean security.
The companies said on Sept. 29 that they will form a joint task force later this year to assess the operational, technical and regulatory conditions needed for a cross-border rollout. The work remains at the proof-of-concept stage, with no timetable for a public product or confirmation that Korean regulators will approve issuance or international distribution.
The partnership targets a persistent access problem for overseas traders seeking exposure to South Korean equities. Foreign markets offer depositary receipts for only a limited group of Korean companies, leaving many Seoul-listed stocks unavailable through established international brokerage channels. A tokenized structure could provide an additional distribution route if it can meet rules governing securities custody, cross-border transfers, shareholder records and local market access.
Dinari and Kakaopay Securities plan to examine whether Dinari’s dShares™ framework can be adapted for Korean-listed shares. Under that model, a token is backed by a corresponding underlying security, while the issuer seeks to pass through economic and shareholder entitlements associated with the share, including dividends and voting rights.
Proof of concept will test the link to Korean shares
The central operational question is whether token supply can remain accurately matched to shares held in custody. The companies said their review will cover issuance and redemption, reconciliation between tokenized holdings and the underlying securities, and the handling of shareholder rights.
Those processes determine whether a tokenized share functions as a reliable representation of a listed equity rather than simply tracking its price. If a token holder is entitled to dividends or a corporate vote, the platform and its custody arrangements must identify the holder, process instructions and account for local rules around record dates, withholding tax and corporate actions.
The proof of concept will also consider infrastructure for making the tokens available through Dinari’s partner network in the United States and other jurisdictions. That adds another layer of complexity: securities offered across borders can trigger separate registration, licensing, transfer and disclosure requirements even when the underlying asset is already listed on the Korea Exchange.
Kakaopay Securities and Dinari did not say which Korean companies or sectors may be included in an initial test. They also did not disclose whether any Korean exchange, custodian, clearing institution or regulator has agreed to participate.
A possible alternative to depositary receipts
The proposal would test whether tokenization can offer a more direct connection to Seoul-listed shares than traditional overseas wrappers such as depositary receipts. In a depositary receipt structure, a bank holds the underlying stock and issues a negotiable certificate representing an interest in those shares. The approach has enabled international access to selected companies, but coverage is limited and establishing a new program can require substantial legal and administrative work.
A tokenized system would not remove those obligations. It could instead shift parts of the distribution and recordkeeping process onto digital infrastructure, while retaining regulated intermediaries responsible for custody and shareholder administration.
The companies’ focus on direct backing places the proposal closer to a securities-token model than to synthetic products, which commonly use derivatives or contractual exposure to mirror a stock’s price. Direct backing can reduce the gap between a token and its referenced asset, though the practical protections available to holders would depend on the final legal documentation and the jurisdictions where tokens are offered.
Dinari brings an existing tokenized-equity structure
Dinari said it currently offers 724 tokenized U.S. stocks and ETFs through dShares™ to eligible participants in the United States and more than 85 jurisdictions. The company is registered with the U.S. Securities and Exchange Commission as a transfer agent, a role involving the maintenance of securities ownership records and the administration of transfers.
The Korean project would extend the company’s model beyond U.S.-listed securities, requiring it to address the market practices attached to Korean equities. These include local settlement arrangements, share registration procedures and the mechanics for processing corporate events across time zones and legal systems.
Dinari’s existing international reach may give Kakaopay Securities a channel for testing demand beyond Korea, but distribution would remain constrained by local eligibility rules. Tokenization does not automatically make a security available to retail traders in every country where a digital wallet or blockchain network can be accessed.
Kakaopay Securities expands its brokerage role
Kakaopay Securities launched in February 2020 and offers services including fractional-share trading and automated stock accumulation. The firm said it obtained an investment trading business license in July 2026, adding to its ability to operate in Korea’s securities market.
The company’s involvement gives the project a Korean brokerage participant with experience serving digitally oriented retail customers. Its role in sourcing and administering the underlying Korean shares would be central if the concept moves beyond technical testing.
Separately, Dinari said it began a technology-focused testing phase on Sept. 21 through an agreement with digital-asset infrastructure provider Fireblocks. Fireblocks has said its platform connects more than 100 banks and 2,500 financial institutions and other organizations. Dinari and Kakaopay Securities did not state that the Fireblocks work forms part of their Korean-equity proof of concept.
The partnership now moves into a design phase where compliance and market-structure questions will carry as much weight as token technology. A workable model would need to preserve the economic and governance features of Korean shares while fitting into the regulatory systems of both the issuing market and the countries where the tokens are distributed.
Curious how tokenized stocks work in practice? Explore tokenized equities and their role in global market access.
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