> For the complete documentation index, see [llms.txt](https://docs.ethosis.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ethosis.org/assets/stock-tokens.md). # Robinhood Stock Tokens as collateral Ethosis lends against Robinhood Stock Tokens first, and it lives on Robinhood Chain because that is where these tokens are. A listed broker issues them, each is backed one for one, they trade around the clock as standard ERC-20s, and Chainlink supplies the price. Those four properties are what make a lending market on them possible. ## Key characteristics | Characteristic | What the token does | | ------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | Who issues it | Robinhood Assets (Jersey) Ltd | | What it is legally | A tokenised **debt security**. The holder has a claim against the issuer that mirrors the underlying share; the holder does not own the share. | | How it is backed | One share held in US custody for every token | | Token standard | ERC-20 with 18 decimals, extended by the ERC-8056 corporate-action interface | | Where it is available | More than 120 countries | | On-chain transfer restrictions | **None.** The documentation shows no allowlist, no transfer hook and no on-chain freeze function. Robinhood enforces eligibility in its own UI and at KYC-checked primary issuance and redemption. | | Price source | Chainlink Data Feeds (24/5) plus Data Streams carrying market status; the ERC-8056 multiplier is already folded into the quoted price | ## ERC-8056 and corporate actions Every Stock Token exposes `uiMultiplier()`, the number of underlying shares represented by one token. When a dividend is paid it is reinvested and the multiplier rises; a stock split is expressed the same way. For collateral this is convenient on every count: * **Dividends stay with the collateral.** The value of a borrower's escrowed tokens grows on its own. No dividend token has to be claimed, held in escrow or argued over. * **Splits need no intervention.** Because the multiplier is part of the Chainlink price, the protocol keeps valuing collateral correctly straight through a split. * **Share-level accounting.** `PriceGate` reads `uiMultiplier()` next to the price, which lets the loan explorer display collateral as both a token count and a share count. While a split, merger or comparable event is in progress the Chainlink feed raises `oraclePaused()`. Ethosis responds by blocking new borrowing and liquidations on that token until the flag clears. Borrowers can still repay throughout. ## The absence of on-chain compliance Since nothing on-chain restricts transfers, a Stock Token can sit in any wallet, including wallets that Robinhood's own screening would reject. This is exactly why Ethosis performs its own eligibility checks at the edge of the protocol, using the [Access registry](/architecture/eligibility.md). Origination, supply and refinance all pass through it, and so does every address that receives collateral from a liquidation or a repayment. Should Stock Tokens later add ERC-7943 (uRWA) or ERC-3643 hooks, the escrow contract already calls `canTransfer` and `canReceive` defensively, and would in that case need the issuer to allowlist it. See [What comes after Stock Tokens](/assets/future-collateral.md). ## Risks from the issuer Two issuer-related risks sit inside every loan secured by Stock Tokens. The protocol prices both instead of pretending they are absent: * **The issuer's credit.** Holding the token means holding a debt claim on Robinhood Assets (Jersey) Ltd. Were the issuer to fail, what the token is worth would depend on what can be recovered from custody rather than on where the share trades. Tier LTVs are chosen with this scenario in view, and wherever a proof-of-reserve feed exists the risk page displays the issuer's status. * **The right to freeze.** The issuer's terms allow it to suspend, freeze or restrict tokens in certain situations, even though the public documentation shows no on-chain freeze function. Before any listed Stock Token's market opens, its deployed bytecode is checked for pause, freeze, blacklist and forced-transfer roles, and the result goes on the risk page. If such a role turns up it is classed as a tail risk and priced into the LTV and the per-token cap. More detail is in [Counterparty risk in the token issuer](/risk/issuer.md). ## Which tokens qualify Tokenised SPY, QQQ, AAPL, MSFT and NVDA sit in Tier A. The complete assignment of tokens to tiers is set out in [Tiering collateral](/assets/collateral-tiers.md). --- # Agent Instructions This documentation is published with GitBook. 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