Introducing Flo yield tokens

Today every position minted through Flo is an ERC-20 in your wallet. fAAPL, fSPY, fTLT, fSGOV. Same ticker as the underlying, prefixed with f. Transferable, lendable, composable. Backed 1:1 by the underlying security held at IBKR or Alpaca. Our two SEC-registered broker-dealer partners.

Why ERC-20. Every DeFi protocol speaks ERC-20 fluently. Money markets, perp DEXs, structured products, automated rebalancers. They all expect a fungible, transferable token with a known interface. We considered an ERC-1155 wrapper for portfolio-style products, but the loss of compatibility wasn't worth the gain. Standards win.

The 1:1 backing chain. Three layers, each verifiable independently:

• Token contract on Base (also Arbitrum, Ethereum). Total supply is publicly readable on-chain.
• SPV custody record at an SEC-registered broker-dealer, segregated under Rule 15c3-3.
• Independent attestation, snapshotted every block. The diff between contract supply and broker holdings is published. If it drifts more than 2 bps, mints halt automatically.

We don't custody the token. The integrator's user does. We custody the underlying. At the broker-dealer, in segregated accounts, under the SPV's name. The token is a contractual claim. The SPV is bankruptcy-remote.

What composability unlocks. An fAAPL holder can post their position as collateral in an Aave-style money market. They can swap to fNVDA without ever touching cash. They can earn yield on fSGOV (which itself is a Treasury proxy) and use that yield as collateral for a leveraged fAAPL long. None of that is possible with a brokerage account today. Tomorrow they're all one transaction.

An ERC-20 doesn't replace your brokerage. It composes with the rest of your stack.

Limits worth being honest about. Voting rights don't pass through. Dividends are credited on-chain at the next block after the broker receives them, not in real time. Corporate actions (splits, mergers, spin-offs) reflect via signed webhook updates and a contract-level rebase, but there's a few-second window where the on-chain supply can diverge from the underlying. We pause transfers during that window. Operational realities of bridging a 24/7 ledger to a 9:30-to-4 market.

Built right, the trade-offs are small relative to what becomes possible. fAAPL is what AAPL should have always been. Composable, transferable, instantly settled, programmable.