The US Treasury Department said Monday that it is tapping Bank of New York Mellon Corp (BK), a financial institution with roots stretching 240 years back to Alexander Hamilton, for the coveted spot as financial agent for the US Treasury Department’s new Trump accounts program coming 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 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 shares rose in Monday trading. The stock is 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 Trump accounts contract for some time as a steady revenue stream that comes with some prestige and face time with US officials.
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 the Trump accounts for its employees.
BNY Mellon has played a unique role in the history of the US Treasury Department. One of its predecessors, the Bank of New York, was started over 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 formed in 2007 after the Bank of New York merged with the Mellon Financial Corporation, a financial institution formed by the family of Andrew Mellon. Mellon served as Treasury Secretary during the roaring 1920s through the Wall Street crash of 1929.
Under current CEO Robin Vince, the bank is in year four of a ten-year transformation journey to boost its productivity and revenue, according to BofA equity analyst Ebrahim Poonawala.