Backpack’s stock tokens may give holders a stronger claim to the shares behind them. Holding a stock token does not always give investors the same rights as holding the stock through a broker. Many other stock tokens pay cash when holders redeem. Backpack lets eligible holders redeem their tokens for a stock position in a Backpack brokerage account with the option to transfer those shares to another brokerage through ACATS and DTCC rails. That position is a security entitlement, the same legal interest investors hold when they buy stock through a traditional broker. Backpack’s token is a claim on an entity holding the shares, so the two carry different rights. Redemption changes what the investor owns while preserving exposure to the stock.