Robinhood CEO Told President They Can Make Trump Accounts 'Robust,' Now Company Could Win Deal

The launch of Trump Accounts could see early investment accounts for kids born over the next several years as an initiative under President Donald Trump. While some billionaires are helping fund the effort, some companies could become partners and winners in the initiative.

Robinhood Could Be Given Key Role

One of the largest digital-focused brokerages in the United States, Robinhood Markets (NASDAQ:HOOD), could be tasked with helping to oversee the millions of Trump Accounts created for new American children.

The Treasury Department is considering selecting up to three financial companies to be trustees for Trump Accounts, according to a report from Bloomberg. Robinhood is preparing internally to be selected, but has not been given the role, according to the report.

Under the launch of the Trump Accounts, customers would be able to move their funds to a new provider, but the initial trustees would have early access to the new fund launches and potentially billions of dollars in new funds that they would manage and potentially new customers to offer additional products to.

Older brokerages, Fidelity Investments and Vanguard Group, have been notably absent from a list of candidates that were being considered. Some companies, including JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC) and Bank of America Corporation (NYSE:BAC) have shown interest in being involved in rollover accounts in a secondary role that could be less costly and still gain access to new funds and customers.

Trump Accounts will give $1,000 to children born between 2025 and the end of 2028 to be used for individual retirement accounts. The initiative was part of the One Big Beautiful Bill Act. The accounts would allow users to invest in U.S. stock index funds and remain locked until an eligible child turns 18.

Billionaires like Michael Dell have stepped up to help finance accounts under the initial plan and in some cases to fund accounts for children that were born before the initiative started. Other companies like Coinbase Global (NASDAQ:COIN) have announced plans to match the accounts for their employee's children.

Robinhood Involved From Start

Robinhood CEO Vlad Tenev previously said that Robinhood was "very engaged" in the Trump Accounts process and attended a White House event that focused on the initiative.

In December, Tenev said he spoke with Trump and told the president that Robinhood can provide the technology and resources to make Trump Accounts "as robust and intuitive as possible."

“I think this is super important, particularly now, because getting people from a young age to buy into our free market system and be owners of America. I think that could solve a lot of the problem," Tenev said.

Robinhood Stock Jumps

Robinhood shares are up 3% in after-hours trading Thursday on news of the report. Shares trade at $104.25 versus a 52-week trading range of $29.66 to $153.86.

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