How Stock Tokens Actually Trade: RFQ, AMM and propAMM
Three different liquidity mechanisms sit behind the same buy button, and they behave differently on size, on spread and at three in the morning.
The short answer
Stock tokens trade through three distinct mechanisms. RFQ, the launch mechanism, uses signed quotes from market makers sourced through aggregators such as 0x RFQ, 1inch Fusion and LiFi – good pricing on size, but the quote comes from off-chain. AMM pools such as Uniswap hold on-chain liquidity that any contract can compose with, at the cost of slippage against pool depth. A proprietary AMM like Rialto sits in between: market-maker-backed liquidity that is still on-chain and composable, used where open AMM depth is thin. Which one you hit decides your fill, and on a large order or outside market hours the difference is not small.
Most traders treat a swap as a swap. With stock tokens that costs you, because three different systems can be on the other side and they fail in different ways.
RFQ: the launch mechanism
Tokenized stocks traded via request-for-quote at launch. A market maker signs a quote off-chain and the trade settles on-chain against it, with the quotes sourced through aggregators including 0x RFQ, 1inch Fusion and LiFi.
The advantage is pricing on size: a professional quotes you a firm price for the whole order rather than letting you walk up a curve. The limitation is that it is a quote from a counterparty – it exists when someone is willing to make it, which is not guaranteed at three in the morning.
AMM: the composable one
Stock tokens also trade in standard AMM pools such as Uniswap. This is on-chain liquidity in the ordinary sense: always there, priced by the curve, usable by any contract without permission.
That last property is the point. An RFQ quote cannot be composed into a smart contract flow; a pool can. Lending markets, vaults and structured products on this chain need pool liquidity to function at all.
propAMM: the middle
Where open AMM depth is limited, a proprietary AMM such as Rialto provides market-maker-backed liquidity that still lives on-chain. It keeps the composability of a pool while sourcing depth from a professional rather than from whoever happened to provide liquidity.
| Mechanism | Price comes from | Composable | Best for |
|---|---|---|---|
| RFQ | A signed market-maker quote | No | Size, during market hours |
| AMM | Pool depth and the curve | Yes | Small orders, and anything a contract must call |
| propAMM | Market maker, on-chain | Yes | Assets with thin open liquidity |
| Primary market | Issuer, mint or burn | No | Authorised participants only |
The primary market you will never touch
Behind all three sits mint and burn with the issuer. Only Authorised Participants can do it, after business onboarding – at issuance the documentation names a single one. That is the ultimate source of supply and the reason secondary liquidity exists at all.
Knowing it exists explains the weekend behaviour of these tokens: when the tokenization window closes, that layer stops, and everything above it trades against a supply that can no longer change.
Choosing in practice
- For a normal-sized buy during market hours, take whatever the aggregator routes you – it is comparing these venues already.
- For a large order, prefer an RFQ route and compare the quote against what the pool would cost you at that size.
- For anything a contract must execute – collateral, a vault, a rebalance – you need pool liquidity, because a signed quote cannot be called on-chain.
- Outside market hours, check depth before assuming a route exists. Thin pools and absent quotes are the same problem wearing different clothes.
- Always read the pool's depth against your size rather than the headline liquidity figure.
The practical summary is short. Stock tokens are liquid in the way an ETF is liquid – through professionals who make them liquid – and on-chain that plumbing is visible rather than hidden. Knowing which pipe you are using is most of trading them well.
Tools mentioned
UniswapFAQ
Where do stock tokens trade on Robinhood Chain?
Through three mechanisms: RFQ using signed market-maker quotes sourced via aggregators such as 0x RFQ, 1inch Fusion and LiFi; standard AMM pools such as Uniswap; and proprietary AMMs like Rialto that provide market-maker-backed liquidity on-chain.
What is the difference between RFQ and an AMM for stock tokens?
RFQ gives a firm quote from a market maker, which usually prices size better, but it is off-chain and cannot be called by a smart contract. An AMM pool is always available and fully composable, at the cost of slippage against pool depth.
Why do lending markets and vaults need AMM liquidity?
Because a signed RFQ quote cannot be executed from inside a contract. Anything that must swap programmatically – collateral liquidation, a rebalance, a structured product – needs on-chain pool liquidity to function.
Can I mint stock tokens myself?
No. Minting and burning happen directly with the issuer and are available only to Authorised Participants after business onboarding. Everyone else buys and sells on the secondary market.
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