The US Treasury Department said Monday that it’s tapping the Bank of New York Mellon (BK), a financial institution with roots stretching back 240 years to Alexander Hamilton, for the coveted spot as financial agent for the Treasury Department’s new Trump accounts program, set to launch this summer.
Along with managing these new investing accounts, the bank is responsible for helping develop an associated app, according to the Treasury Department’s release. BNY has partnered with Robinhood (HOOD), which will serve as the brokerage and initial trustee for the Trump accounts.
“Together, these partners will support the Treasury’s goal of ensuring every eligible child can access a Trump Account quickly and easily,” the release stated.
BNY stock rose in Monday trading. The shares are up 6% for the year so far, notably outperforming among lenders and other financial stocks in that period.
“We are honored,” BNY CEO Robin Vince said in an emailed statement.
“BNY has been part of the fabric of the U.S. financial system since our country’s founding and, through this landmark initiative, will help more Americans invest in our economy, strengthen U.S. capital markets and give more children a foundation for long-term financial security,” Vince added.
Trump accounts are tax-advantaged investment accounts included in the One Big Beautiful Bill Act that President Trump signed into law last year. These accounts come with a $1,000 federal contribution for millions of children born between January 2025 and the end of December 2028.
Wall Street firms have eyed the opportunity around Trump accounts for months given that the contract brings the opportunity to attract millions of future customers along with some prestige.
Along with Robinhood, Charles Schwab (SCHW), BlackRock (BLK), and Chime Financial (CHYM), BNY was early in announcing plans to match the federal government’s $1,000 contribution to Trump accounts for its employees.
Read more: These are all the companies pledging matching funds to Trump accounts
BNY has played a unique role in the history of the US Treasury Department. One of its predecessors, the Bank of New York, was founded more than 240 years ago by Alexander Hamilton, before he became the nation’s first Treasury secretary. It also gave the federal government its first loan.
BNY was formed in 2007 following the merger of the Bank of New York with Mellon Financial Corporation, a financial institution founded by the family of Andrew Mellon. Mellon served as Treasury secretary during the Roaring ’20s through the Wall Street crash of 1929.
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