Robinhood structures its stock tokens through a special purpose vehicle (SPV) to offer indirect exposure, but experts argue the tokens function as unbacked derivatives

Quotes that support claims

Tom Schmidt, of crypto-focused venture fund Dragonfly, dug into the small print behind the tokens, pointing out that it’s “pretty clear that you’re buying a *derivative* that is *not* redeemable for the underlying and not backed 1:1

Robinhood, for its part, defends itself by explaining that these assets are issued through a “special purpose vehicle” to offer indirect exposure to private markets.