> For the complete documentation index, see [llms.txt](https://docs.usegimbal.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.usegimbal.app/collateral/stock-tokens.md). # Stock Tokens as collateral The properties of a Robinhood Stock Token that make it workable as loan collateral, and the two issuer risks the protocol prices rather than ignores. A Stock Token is not a share. It is a debt security issued by Robinhood Assets (Jersey) Ltd, and its value tracks one share held in US custody. The holder owns a claim on the issuer, never the share itself. That legal shape, plus three technical ones, is what lets Gimbal take the token into escrow and lend USDG against it. ## Four facts the desk relies on 1. **It is a plain ERC-20.** Eighteen decimals, freely transferable, extended with the ERC-8056 interface for corporate actions. Any wallet can hold it and any contract can escrow it. 2. **It is backed one for one.** Every token in circulation has a share in custody behind it. 3. **Chainlink prices it around the clock on trading days.** Data Feeds publish 24/5, Data Streams add the market-status flag, and the ERC-8056 multiplier is already folded into the quoted price. 4. **A regulated broker distributes it.** The tokens are offered in more than 120 countries, which gives the collateral a holder base before any lending market exists. Together these are the reason the protocol lives on Robinhood Chain, where the tokens are issued. See [The case for Robinhood Chain](/robinhood-chain/the-case-for-robinhood-chain.md). ## Reference sheet | Field | Value | | --------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------- | | Issuing entity | Robinhood Assets (Jersey) Ltd | | Instrument | Tokenised debt security. The claim tracks the underlying share; the share stays with the custodian. | | Reserve | A share held in US custody behind every token | | Token standard | ERC-20, 18 decimals, with the ERC-8056 corporate-action extension | | Distribution | More than 120 countries | | On-chain restrictions | None documented: no allowlist, no transfer hook, no freeze function. Robinhood checks eligibility in its own app and at KYC-gated issuance and redemption. | | Pricing | Chainlink Data Feeds (24/5) and Data Streams with market status; multiplier included in the price | ## Dividends and splits: ERC-8056 `uiMultiplier()` on each token reports how many underlying shares a single token stands for. When a dividend is paid it is reinvested and the multiplier rises. When the stock splits, the same figure changes to match. Nothing else moves. For an escrowed position this works in the borrower's favour three times over. * The dividend lands inside the collateral. Escrowed tokens simply become worth more; there is no separate dividend token to claim, hold, or dispute. * A split leaves the loan untouched. Because Chainlink bakes the multiplier into the price, collateral is valued correctly straight through the event with nobody intervening. * Positions can be read in shares. `PriceSentinel` reads `uiMultiplier()` next to the price and returns it in its quote, which is how the Explorer can display an escrowed position as a token count and as a share count. While a split, merger or comparable event is being processed, the Chainlink feed reports `oraclePaused()`. The desk rejects new originations on that token and the collateral auction refuses to open, until the flag clears. Repayment is not affected; nothing about a paused feed can stop a borrower from paying down and withdrawing. ## Eligibility lives at the boundary Since the token carries no transfer logic of its own, it can sit in any wallet, including one Robinhood's screening would have turned away. Gimbal does not rely on the token for this. The [role registry](/architecture/eligibility.md) is consulted at the edge of the protocol: the borrower on every origination, a relayer submitting on a borrower's behalf, each lender whose offer fills, every bidder in a collateral auction, and anyone a slice token is transferred to. Should Stock Tokens ever gain hooks under ERC-7943 (uRWA) or ERC-3643, the issuer would have to allowlist the escrow before a market could open, and the desk would need hook-aware transfers. Today it moves tokens with standard ERC-20 calls. [Collateral still to come](/collateral/next-markets.md) covers permissioned tokens in more detail. ## Two risks that belong to the issuer Every loan against a Stock Token carries risk that has nothing to do with the share price. The protocol prices both parts instead of pretending they are absent. **Credit of the issuer.** Holding the token means holding Robinhood Assets (Jersey) Ltd as a counterparty. Were the issuer to fail, recovery would depend on what the custodian returns, not on the market price of the share. The tier LTVs already assume that scenario, and where a proof-of-reserve feed is published, Telemetry shows the issuer's reserve status. **The freeze clause.** The issuer's terms keep a right to restrict, freeze or suspend tokens in certain defined cases, even though no on-chain freeze function appears in the public documentation. Before any Stock Token market opens, the deployed bytecode is read for any pause role, freeze role, blacklist or forced-transfer power, and what is found goes onto the risk page. A role found there counts as tail risk, priced into the tier LTV and the per-token cap. [The issuer behind every Stock Token](/risk/issuer.md) goes through both in full. ## The accepted set Tier A is made up of the tokenised forms of NVDA, AAPL, MSFT, SPY and QQQ. Every token's tier and cap is listed in [Tiers and loan-to-value limits](/collateral/tiers-and-ltv.md). --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.usegimbal.app/collateral/stock-tokens.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. 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