Stock Tokens are tokenized instruments issued by a Robinhood entity that track the price of listed equities. Holding a Stock Token gives you a contractual claim against the issuer — not ownership of the underlying share, its voting rights, or a direct claim on the company it tracks. If the issuer fails, your claim ranks as a creditor's claim, whatever the underlying stock does.
Equity prices move, including against you. On-chain markets for tokenized equities can be thin — especially outside exchange trading hours, on weekends, and around corporate actions — and prices can gap when markets reopen. Spending backed by a portfolio means a falling portfolio reduces your spending capacity.
Spending against your portfolio means borrowing against it through an on-chain lending market — your assets are not sold, but they are pledged as collateral. If your collateral falls far enough relative to what you owe, part of it can be sold (liquidated) to repay the debt — potentially at a loss, at a bad moment, and with a liquidation penalty. Tengo tries to top up and de-risk automatically, but automation can act on stale data or fail during an outage, and it cannot guarantee liquidation is avoided in every market. If it happens, the loss is yours.
Value you hold through Tengo is not a bank deposit. It is on-chain collateralised borrowing against assets you continue to hold. It is not protected by any deposit-guarantee or investor-compensation scheme (for example the FSCS or any national DGS), and Tengo is not a bank. If a token issuer, a stablecoin, or an underlying protocol fails, you can lose value and no compensation scheme will make you whole.
Balances move through stablecoins (such as USDG and the card settlement token) and audited on-chain protocols. Stablecoins can deviate from their peg; smart contracts can contain defects despite audits; bridges between chains carry their own risks. We mitigate — finite approvals, route allowlists, contract-enforced permissions — but cannot eliminate these risks.
The Tengo agent manages your card buffer automatically. Its authority is limited by on-chain permission contracts that you can inspect: it can fund your card and manage positions inside your account's allowed venues; it cannot transfer funds to outside addresses. Automation can still act on stale data or fail to act during outages — thresholds are set conservatively for that reason.
Tengo is an independent product. "Robinhood" is a trademark of Robinhood Markets, Inc. Tengo is not affiliated with, endorsed by, or sponsored by Robinhood. The Tengo card is issued through Gnosis Pay and its regulated partner (Monavate) pursuant to a license from Visa; Tengo itself is a technology provider, not a bank, custodian, or investment adviser.