The Treasury Department on Monday announced it would tap The Bank of New York Mellon Corporation, in conjunction with online brokerage platform Robinhood, to handle implementing the “Trump accounts” retirement savings program for newborns.The Treasury Department said Monday that BNY has been designated as the government’s “financial agent” in managing the initial accounts and developing and operating an online application that families can use to access the funds.
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In announcing the move, Treasury said the app would be designed as a “custom, white-label product designed exclusively for Treasury” and that the agency would ultimately control the platform and accounts.
“BNY will manage the initial accounts and help develop the new Trump Accounts app — a secure, user-friendly platform that will enable families to easily access and manage their accounts,” the Treasury announced. “The National Design Studio, in conjunction with Robinhood, is creating an intuitive user interface and user experience that allows families to explore their Trump Accounts with confidence and ease.”
Congress established the “Trump accounts” as part of last year’s tax law. The accounts would be seeded with $1,000 each — funded by tax dollars — for each child born between 2025 and 2028. Funds would be allowed to grow tax-free until they are withdrawn. The Brookings Institution estimates that the tax legislation overall would cost between $3.7 and $5.1 trillion over the next ten years.
Vlad Tenev, chairman and CEO of Robinhood Markets, said the firm was happy to partner with the renowned custody bank and would focus on ensuring the account platform is accessible and premium.
“We are proud to power Trump Accounts with Robinhood’s technology, and to work alongside a historic and trusted institution like BNY,” Tenev said in a release. “Our task is clear: to provide the next generation of Americans with a world-class, intuitive platform to jumpstart their financial future.”
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BNY CEO Robin Vince said that the Trump account program is a win for America’s future financial security.
“In collaboration with Robinhood, a leading financial technology platform committed to democratizing the markets for investors, we are helping to expand access to financial opportunity for all Americans,” Vince said in a release. “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.”
BNY, the world’s largest custodial bank, has played an important role in lending its infrastructure to the government for implementing its programs and has also been a leader in developing inroads between traditional finance and digital assets.
In 2024, the Treasury entered into a five year contract with BNY to run its Direct Express program, which delivers federal benefits to unbanked Americans through a debit card program. That contract was then awarded to Fifth Third last September, which a BNY spokesperson attributed to “readiness challenges” among some other partners involved in the contract, as determined by the Treasury’s Bureau of the Fiscal Service.
BNY has also expanded its custody activities in the digital asset space in recent years. Last year, the bank struck a deal with Ripple to hold reserves for the digital asset firm’s RLUSD stablecoin.
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