No, the issue is that Robinhood is a startup brokerage with likely very few actual assets.
Go try to get a $2M short term loan using a $1M home as collateral. You will get laughed out of every bank in the country.
Now try to get investors to invest $2M for half of your home, again the mirth and laughter will be rampant. Eventually you will find someone to lend or invest $700K but it will take months to close and meanwhile Robinhood is dead.
Reading closer, they supposedly got ~$500 million from its banks as loans and $1 billion from existing investors. My issue is in not knowing when this was all initiated and how long it takes for the money to go from its current place(s) to Robinhood.
Regardless, I am still learning all of this so thank you for replying and adding clarity.
Now try to get investors to invest $2M for half of your home, again the mirth and laughter will be rampant. Eventually you will find someone to lend or invest $700K but it will take months to close and meanwhile Robinhood is dead.