Original | Odaily Planet Daily (@OdailyChina)

Author | Azuma (@azuma_eth)

On April 6 local time, the U.S. Department of the Treasury officially announced the latest developments regarding the "Trump Accounts" — Bank of New York Mellon (BNY) has been selected as the U.S. government's designated financial agent, responsible for managing the initial accounts; Robinhood will cooperate with BNY to act as the broker and initial trustee for the "Trump Accounts."

All parties will jointly support the Treasury's goal to ensure that every eligible American newborn can quickly and conveniently access the "Trump Accounts."

What is a “Trump Account”?

The so-called “Trump Account,” also known as the 530A account, is a tax-deferred investment account plan authorized by then-President Trump on June 9, 2025, under the "Big and Beautiful" Act, aimed at establishing government-funded savings accounts for American citizens' children born between January 1, 2025, and January 1, 2029.

The initial funds for the "Trump Accounts" primarily come from government allocations, private donations, and family deposits. The federal government will provide $1,000 in initial funding for each account; last December, Dell founder Michael Dell and his wife announced a donation of $6.25 billion, which will establish accounts for 25 million children from families with a median income below $150,000, with each account receiving $250; parents, friends, and other specified individuals can also deposit into designated accounts, but a maximum of $5,000 can be contributed per child per year.

Odaily note: The $6.25 billion donation by Michael Dell and his wife is described by Trump as "one of the most generous acts in American history."

On the investment side, “Trump Accounts” will be limited to low-cost investment funds or exchange-traded funds (ETFs) that track broad stock price indices such as the "S&P 500," and cannot be used to invest in specific industry or sector indices. The use of the funds is also restricted; before January 1 of the year the child turns 18, funds in the account cannot be withdrawn for any reason (unless the child passes away or funds are transferred to another similar restricted account). After the child turns 18, the account will be treated the same as a traditional Individual Retirement Account (IRA).

According to the current plan, “Trump Accounts” are expected to begin accepting initial deposits on July 4, 2026 (the 250th anniversary of the Declaration of Independence). This coincides with the run-up to the 2026 midterm elections and is expected to become a key policy "trump card" for the Republican Party.

What is the potential scale?

According to Statista's statistics, the annual birth rate in the United States has fluctuated around 3.6 million since 2020.

Using this data as a benchmark, it is estimated that during the plan coverage period from January 1, 2025, to January 1, 2029, the number of American newborns could reach about 14.4 million, and if the federal government opens a $1,000 "Trump Account" for each child, this translates to a massive fund of $14.4 billion; combined with potential private donations and family deposits, this figure could continue to grow into the tens of billions; should the plan continue as a long-term initiative post-2029, its potential scale would be even more staggering.

Due to characteristics such as long-term locking, passive investing, and continuous additions, the "Trump Account" will essentially become a long-term passive fund pool with a potential scale of hundreds of billions of dollars. Compared to a purely child welfare attribute, it resembles a long-term funding channel established between fiscal policy and capital markets, directly incorporating future generations into the stock market system.

Who stands to benefit the most: Robinhood?

After the announcement of the "Trump Account" plan, financial institutions such as JPMorgan Chase, Charles Schwab, and Robinhood began to compete fiercely around related services, and with the U.S. Treasury's official designation of Robinhood as broker and initial trustee, Robinhood has secured a "ticket to enter" and is expected to become one of the most direct beneficiaries of this plan.

The most immediate benefit is on the user side. According to the currently estimated policy coverage scope, the "Trump Account" will correspond to millions of newborn accounts, and the interaction for these accounts will be completed through a unified application — in other words, Robinhood will gain a batch of potential users who are bound to the platform from birth, with the oldest being only 1 year and the youngest not even born yet... More critically, these users are not just one-time traffic but are potential customers with extremely long lifecycles. After turning 18, children's accounts will convert to IRA-like long-term investment accounts, which means Robinhood has the opportunity to directly engage these users as they transition to adult investment activities, extending further into ETFs, options, and even crypto-assets.

The benefits on the asset side are also noteworthy. The funds in "Trump Accounts" have distinct long-term lock-in features, which are unlikely to exit before the child reaches adulthood, while the investment scope is limited to index funds. Such funds are considered high-quality custodial assets for brokers — low volatility, long retention, and predictable scale. Additionally, Robinhood's past core label was as a "retail trading platform," which heavily relied on market conditions and trading activity for growth, while "Trump Accounts" introduce low-frequency, long-term, passive investment funds, which aligns more closely with traditional wealth management business funding characteristics. As the proportion of such funds increases, it will also enrich Robinhood's business diversity, addressing its relative shortcomings.

At the same time, the endorsement at the policy level is also symbolically significant. Participation in the account plan led by the Treasury allows Robinhood to enter the U.S. government financial infrastructure system for the first time, enhancing its institutional credibility and providing new narrative space for future expansions into retirement accounts, long-term investments, and wealth management.

From a political perspective, the “Trump Account” serves as an important policy bargaining chip for the Republican Party in the midterm elections; from a capital market perspective, this plan introduces a systematic long-term funding source for the U.S. stock market. Robinhood stands at the intersection of both — as millions of newborns who have yet to enter society "automatically open accounts," the policy design surrounding ballots quietly lays a growth curve for Robinhood that could last over ten years.

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