When large companies donate stocks to Trump's account, which targets will benefit?

Whoever gives the president face first will be the first to get a good deal from the president.

Author: Azuma, Odaily Planet Daily

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

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

The initial funding for the "Trump Accounts" comes primarily from government allocations, private donations, and family deposits. The federal government will provide $1,000 in initial funding for each U.S. citizen child born between January 1, 2025, and January 1, 2029; in addition, the largest donor, Dell founder Michael Dell and his wife, announced in December last year a donation of $6.25B to open accounts for 25 million children in families with median household incomes below $150k, 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, more than 50 companies have committed to donating for their employees' children.

Under 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 at age 18 and the full balance starting at age 25. Account earnings are taxed at long-term capital gains rates or income tax rates.

Trump's Live Promotion Sends Dell Stock Surging

On July 6 local time, Trump held a launch celebration for the "Trump Accounts" in the Oval Office of the White House and personally rang the opening bell for the New York Stock Exchange and Nasdaq on the evening prior, marking the first market opening after the full launch of the "Trump Accounts."

Trump declared at the event: "Today is a historic day. As America celebrates its 250th anniversary, we have launched the 'Trump Accounts'... to ensure that every American child has an advantage from the starting line and a fair chance to realize the American Dream."

Trump also praised the largest donors of the "Trump Accounts," Michael Dell and his wife, urging the public to "go buy a Dell computer" and joked, "We will always find a way to help him earn that money back."

Affected by the president's public endorsement, Dell's stock surged over 3% intraday yesterday, closing at $411.8, up 4.43%.

Treasury Allows Stock Donations; SpaceX Follows Suit

Alongside the launch of the "Trump Accounts," the U.S. Department of the Treasury has opened a new funding channel for the accounts.

On July 2, the Treasury officially announced that the "Trump Accounts" will begin accepting stock donations. Eligible charitable donors can donate approved listed stocks to the accounts.

After the Treasury gave the green light, Trump publicly called out Elon Musk, urging him to donate SpaceX stock to the "Trump Accounts." As of this writing, although Musk himself has not publicly responded, SpaceX President and COO Gwynne Shotwell and her husband have announced that they will donate a portion of their SpaceX stock to the "Trump Accounts" of over 2 million American children, estimated at about 2 million shares of SpaceX stock, totaling approximately $325 million.

Gwynne Shotwell stated that the donation will be specifically allocated to accounts of children aged 11 to 17 living in areas with low average household incomes, with particular attention to children living near their home in central Texas.

From a corporate perspective, participating in the "Trump Accounts" is no longer just a charitable act but could also become a new channel for brand exposure. Especially after Trump publicly endorsed Dell last night, the market has begun to focus on a new logic: In projects that Trump highly prioritizes and personally promotes, the earlier a company participates, the more likely it is to receive the president's public endorsement.

With SpaceX's follow-up, it is expected that more tech companies, large enterprises, and wealthy individuals may join the plan in the future. For companies, donating a portion of stock does not directly weaken operating capacity but could yield long-term political exposure, brand value, and potential user reach—this is not a losing deal.

Which Assets May Benefit?

From an investment perspective, the biggest significance of the "Trump Accounts" lies in creating a new pool of funds that could last for decades. Considering the fund pool's operational mechanism and access pathways, along with Trump's current active promotion, the potential beneficiaries of the accounts mainly include three levels.

First, the direct capital flow of the "Trump Accounts"—the S&P 500 index. According to the rules announced by the U.S. Treasury, at 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 performance of the S&P 500 index. Additionally, the Treasury has selected other ETF index funds such as IVV, VTI, SRTM, and ITOT for the investment portfolio of the "Trump Accounts."

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

Second, the access pathway of the "Trump Accounts"—BNY Mellon and Robinhood. As of now, the "Trump Accounts" have disclosed only two partners: the designated financial agent BNY Mellon and the designated broker and initial trustee Robinhood, which also developed 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 population of over ten million newborns. These accounts mean tens of millions of potential long-term customers, decades of account life cycles, and opportunities for investment, trading, and wealth management migration upon adulthood. This is similar to the logic of financial institutions competing for IRA and 401(k) users in the past. If the "Trump Accounts" eventually become the default gateway for American children to enter the capital market, the platform controlling the entrance could gain a user asset pool lasting decades.

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

Third, the early donors—whoever gives the president face first will be favored by the president. Referring to the Dell case, such donations can no longer be simply understood as pure charity. Trump has publicly praised Dell at White House events and actively created exposure for its brand.

As Trump's most important "political leverage" at present, as more companies join in the future, early participants may receive presidential-level public promotion, enhancing brand influence, and have the opportunity to establish closer ties with government resources.

Oh, and one more thing... At yesterday's event, Trump was asked whether the accounts might include Bitcoin. His answer was: "Maybe."

From Policy Dividends to Long-Term Capital Entry Points

It should be noted that the "Trump Accounts" are still in their early stages. Their true impact will depend on subsequent funding scale, corporate participation, and policy continuity.

In the short term, the market is more likely to trade on the emotional value brought by Trump's public endorsement and the exposure effect gained by early participating companies. However, from a longer-term perspective, if this plan continues to advance, it could become a new wealth entry point 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, then having financial institutions and capital markets absorb long-term funds. For investors, what may truly be worth watching is not the next company Trump names, but who can occupy the core position in this decades-long pool of funds.