Key insights
- The Treasury Department designated BNY Mellon as a financial agent and Robinhood as a brokerage for the new Trump Accounts program, which will deposit $1,000 into investment accounts for children born between 2025 and 2028. This represents a form of government stimulus, albeit several years out, and could have a slightly positive impact on financial institutions and overall market sentiment.
WASHINGTON, April 6 (Reuters) - The Bank of New York Mellon Corporation has been chose as a financial agent of the U.S. government to support implementation of the new Trump Accounts program, the U.S. Treasury Department said on Monday.
BNY will help develop the Trump Accounts app as part of the process and will manage the initial accounts, the Treasury said. Robinhood will serve as brokerage and initial trustee of the accounts.
Trump Accounts are the government-supported investment accounts for newborns in the United States introduced by U.S. President Donald Trump in January. The Treasury has said it will deposit $1,000 into investment accounts for all children born between 2025 and 2028, with some 25 million families estimated to be eligible.
(Reporting by Doina Chiacu and Bhargav Acharya)