The post Kakao Pay Securities and Dinari test blockchain rail to open Korean stocks to overseas buyers appeared on BitcoinEthereumNews.com.
Kakao Pay Securities and Dinari are exploring the possibility of using tokenization for global distribution of shares listed on the Korea Exchange. A partnership has been formed between the two companies to develop a framework for sourcing Korean equities, complete a proof of concept, and determine all legal, technical, and operational steps necessary for overseas distribution, particularly with regard to the U.S. market. In the meantime, the initiative is still at a trial run stage, with no tokenized shares available for purchase at the moment. From access arbitrage to distribution rail The major advantage is better access. Foreign investors still have limited options when it comes to purchasing shares listed in Korea directly. So far, most of the Korean stock market is not covered by depositary receipts. Tokenization can offer new possibilities, allowing investors to access Korean stocks through digital tokens that are underpinned by the original shares. This supports the general trend we see for tokenized stocks. As reported by Cryptopolitan, the monthly on-chain volume increased from $1 billion in January to $9 billion in July as new platforms made stock tokens available to more investors. The Kakao Pay-Dinari project takes this model of distribution and applies it specifically to Korean stocks. How Dinari’s model works Dinari employs a custodial structure for its dShares tokens, where there is one corresponding security backing each token. In August, Dinari stated that eligible U.S. investors will be able to trade 724 tokenized US stocks and ETFs, including the S&P 500, while companies can use the system via an API. According to the company, dShares allows one to retain the advantages of dividends, voting rights, corporate actions, and NBBO execution, as it impacts investors in more than 85 countries. South Korea’s pilot test is aimed at checking the possibility of using that infrastructure…