Stock tokens on Robinhood's offshore platform reinvest dividends using a multiplier, allowing users to redeem for cash. This approach aims to provide a seamless experience for investors, enabling them to participate in the growth of their token holdings without incurring significant tax liabilities.

Source
"Stock Tokens Compared: Ownership and Exit Rules" — The Defiant

This article is Bitcoincryptos' summary and analysis of reporting originally published by The Defiant. Read the full original report at the link above.