On Thursday, Vlad Tenev, the CEO and co-founder of Robinhood Markets Inc. (NASDAQ:HOOD), confirmed he personally spoke with President Donald Trump, assuring him that the company is ready to provide technology, operational resources and top talent to make "Trump Accounts as robust and intuitive as possible."
Robinhood Steps Up for Trump Accounts
enev shared a video of his appearance on CNBC on X, saying, "Robinhood has given the President and Treasury our assurances that we can dedicate the technology and capital to making Trump Accounts as robust and intuitive as possible."
In the video, he highlighted Robinhood's commitment to the federal savings program for children born between 2025 and 2028.
In the video, he said, "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."
The program, officially announced by President Trump earlier this week, will provide $1,000 in government seed money to eligible children, while parents can contribute up to $5,000 annually.
Wall Street Firms Compete For Role
Major financial institutions are vying to manage the accounts. Early contenders reportedly include JPMorgan Chase (NYSE:JPM), Charles Schwab (NYSE:SCHW), Robinhood and asset manager BlackRock (NYSE:BLK), reported the Wall Street Journal on Wednesday.
These firms hope to become the Treasury Department's "designated financial agent" for the accounts, which could generate long-term client relationships once children reach adulthood.
Dell Technologies, Inc. (NYSE:DELL) founder Michael Dell and his wife, Susan Dell, have already boosted the initiative, donating $6.25 billion to seed 25 million accounts with $250 each, giving the program a significant early foundation.
Critics Question Restrictions
The proposal has also drawn skepticism. Critics say the initiative may not be the most effective solution, noting that it essentially creates a stock-linked savings vehicle that parents can contribute to but cannot access until the child turns 18.
Meanwhile, a Benzinga reader poll indicates that many parents would likely use the initial $1,000 to invest in mutual funds, ETFs, or individual stocks — with popular choices including high-growth Magnificent Seven names such as Nvidia Corp (NASDAQ:NVDA), Apple Inc. (NASDAQ:AAPL) and Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL).
Benzinga's Edge Stock Rankings show HOOD gaining momentum across the short, medium and long-term timeframes. Additional performance details can be found here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
