When big corporations donate stocks to the "Trump Account," which targets will benefit?

Original: Odaily Planet Daily (@OdailyChina)

Author: Azuma (@azuma_eth)

On July 4, the U.S. Treasury Department officially announced that the long-anticipated "Trump Accounts" have been launched. American parents and children can now download the app and access their accounts to check fund status in real-time or make donations.

• Odaily Note: The so-called "Trump Accounts," also known as 530A Accounts, are a tax-deferred investment account plan authorized by the current U.S. President Donald Trump on June 9, 2025, based on the "Big and Beautiful" Act. This account is open to all U.S. residents under 18, aiming to establish government-funded savings accounts for children of American citizens.

The initial funding for the "Trump Accounts" primarily comes from government appropriations, private donations, and family deposits. The federal government will provide $1,000 in initial funding for each child of a U.S. citizen born between January 1, 2025, and January 1, 2029. Additionally, the largest donors, Dell founder Michael Dell and his wife, announced in December last year a donation of $62.5 billion to open accounts for 25 million children from families with a median regional income below $150,000, depositing $250 into each account. Parents, friends, and other specific individuals can also deposit into designated accounts, such as through the "employer contribution" channel. Currently, over 50 companies have committed to donating for their employees' children.

According to current regulations, funds in the "Trump Accounts" will be invested in index funds tracking the U.S. stock market. Children can withdraw 50% of the account balance upon turning 18, and the full balance from the age of 25. Account earnings are taxed at the long-term capital gains tax rate or income tax rate.

Trump's On-Site Endorsement, Dell Stock Surges Immediately

On July 6 local time, Trump held a launch celebration for the "Trump Accounts" in the Oval Office of the White House, personally ringing the opening bells of the New York Stock Exchange and Nasdaq for the previous evening to commemorate the first market opening after the full launch of the "Trump Accounts."

Trump announced at the event: "Today is a historic day. As America celebrates its 250th anniversary, we launch the 'Trump Accounts'... to ensure every American child has the advantage of starting strong and a fair chance to realize the American Dream."

At the scene, Trump also highly praised the largest donors, Michael Dell and his wife, not only calling on the public to "go buy a Dell computer" but also joking, "We'll always find a way to help him earn that money back."

Influenced by the president's public endorsement, Dell's stock price saw a short-term surge of over 3% during intraday trading yesterday, closing at $411.8, an increase of 4.43%.

Treasury Allows Stock Donations, SpaceX Follows Suit

Concurrently with the launch of the "Trump Accounts," the U.S. Treasury Department has opened a new funding channel for the account.

On July 2, the Treasury Department officially announced that the "Trump Accounts" will begin accepting stock donations. Qualified charitable donors can donate approved publicly traded stocks to the account.

After the Treasury Department gave the green light, Trump also publicly called out Musk, urging him to donate SpaceX stock to the "Trump Accounts." As of writing, although Musk himself has not publicly responded, SpaceX President and COO Gwynne Shotwell and her husband have announced their intention to donate some of their SpaceX stock to the Trump Accounts of over 2 million American children. The expected donation is approximately 2 million SpaceX shares, with a total value of about $325 million.

Gwynne Shotwell stated that the donation funds will be specifically designated for accounts of children aged 11 to 17 residing in areas with lower average family incomes, with particular attention to children living near her home in central Texas.

From a corporate perspective, participating in the "Trump Accounts" is no longer just a philanthropic act but could also become a new channel for brand exposure. Especially after Trump publicly endorsed Dell last night, the market has begun focusing on a new logic: In projects highly focused on and personally promoted by Trump, the earlier companies participate, the more likely they are to receive the president's public endorsement.

With SpaceX following suit, it is expected that more tech companies, large corporations, and wealthy individuals may join the plan in the future. For companies, donating a portion of stock may not directly weaken operational capabilities but could yield long-term political exposure, brand value, and potential user reach. This is not a losing proposition.

Which Assets Might Benefit?

From an investment perspective, the most significant implication of the "Trump Accounts" is the creation of a new capital pool that could last for decades. Considering the operating mechanism and access path of this pool, along with Trump's current active moves, the potential beneficiaries of the account mainly fall into three categories.

First, the direct fund flow of the "Trump Accounts" — the S&P 500 Index. According to rules published by the U.S. Treasury Department, upon the launch of the "Trump Accounts," all funds will be invested in the "State Street SPDR S&P 500 Index ETF" (SPYM), a low-cost exchange-traded fund (ETF) designed to track the S&P 500 Index. Additionally, the Treasury Department has selected other ETF index funds like IVV, VTI, SRTM, and ITOT for the "Trump Accounts" portfolio.

According to data from Statista, the average annual birth rate in the U.S. since 2020 is approximately 3.6 million people. Based on this estimate, the number of eligible newborns between January 1, 2025, and January 1, 2029, is about 14.4 million. If each child receives $1,000 in initial funding from the federal government, the government contribution alone would reach approximately $14.4 billion. Combined with the Dell couple's donation, corporate employer contributions, and future family deposits, the total account assets could potentially expand to hundreds of billions of dollars. If the plan continues long-term, it could become a new source of long-term incremental funding for the U.S. capital market.

Second, the access path for the "Trump Accounts" — BNY Mellon and Robinhood. To date, only two partners have been disclosed for the "Trump Accounts": the designated financial agent, BNY Mellon, and the designated broker and initial trustee, Robinhood, which is also responsible for developing the "Trump Accounts" application.

For these two companies, the core significance of the "Trump Accounts" lies in their long-term value: the U.S. will have a newborn population exceeding tens of millions. These accounts represent tens of millions of potential long-term customers, decades-long account lifecycles, and opportunities for investment, trading, and wealth management migration upon adulthood. This logic is similar to past financial institutions competing for IRA or 401(k) users. If the "Trump Accounts" ultimately become the default gateway for American children entering the capital market, the platform controlling the entry point could secure a user asset pool lasting several decades.

Among these, Robinhood, which directly interfaces with users, is particularly noteworthy. This could be a crucial opportunity for its transformation from a "young people's trading app" to a "mass wealth management platform."

• Odaily Note: Please refer to Robinhood Gains a Batch of New Stock Investors: The Oldest is 1, the Youngest is -3.

Third, early donors — those who show respect to the president first are favored more by the president. Referring to the Dell case, such donations can no longer be simply understood as pure philanthropic acts. Trump has publicly praised Dell at a White House event and actively created exposure for its brand.

As the "political asset" Trump currently values most, early participants may receive president-level public publicity, enhancing brand influence, as more companies join in the future. They may also have opportunities to establish closer ties with government resources.

Oh, and one more thing... At yesterday's event, Trump was asked whether the account might include bitcoin. His response was, "Maybe."

From Policy Dividends to Long-Term Capital Gateway

It's important to note that the "Trump Accounts" are still in their early launch phase. Their true impact scale will depend on subsequent fund sizes, corporate participation rates, and policy continuity.

In the short term, the market is more likely to trade on the sentiment value generated by Trump's public endorsements and the exposure effect for early participating companies. However, from a longer-term perspective, if this plan can be steadily advanced, it could become a new wealth gateway connecting the next generation of American consumers, capital markets, and financial institutions.

In a sense, the "Trump Accounts" are attempting to replicate the path of the U.S. retirement account system — creating an entry point through government policy, followed by financial institutions and capital markets absorbing long-term funds. For investors, what may truly be worth watching is not necessarily the next company named by Trump, but who can secure the most central position within this multi-decade capital pool.