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US considers Robinhood to manage Trump-backed investment accounts for children

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The U.S. government is considering selecting Robinhood to help oversee new government-supported investment accounts for children, known as “Trump accounts,” according to a Bloomberg News report citing people familiar with the matter. The program would involve opening accounts for millions of U.S. children and placing Robinhood in a trustee role for the initial rollout.

The report said Robinhood has begun internal preparations in case it is chosen, while other major investment firms such as Fidelity Investments and Vanguard Group have not been approached for the first phase. The U.S. Treasury Department is expected to select up to three firms to serve as initial trustees, with a decision anticipated soon. Neither Robinhood nor the Treasury immediately commented on the report.

The accounts were announced this week by Donald Trump as part of a government-backed initiative aimed at encouraging long-term investing. Under the plan, the U.S. Treasury Department would deposit $1,000 into an investment account for every child born in the United States between 2025 and 2028. Treasury estimates suggest roughly 25 million families could qualify.

The administration projects that, without any additional contributions, the accounts could grow to about $5,800 by the time beneficiaries reach age 18. Trump has also urged U.S. businesses to contribute to the accounts on behalf of employees’ children, potentially increasing long-term returns. The proposal represents a significant expansion of government involvement in retail investing and could elevate the role of fintech platforms in public financial programs.

eToro Beats Profit Estimates as Retail Investors Drive Market Momentum

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eToro, the stock and cryptocurrency trading platform, reported better-than-expected third-quarter profit on Monday, driven by a surge in retail investor activity and renewed optimism across global markets. The company’s shares rose 7% in afternoon trading following the announcement.

The ongoing equities rally—fueled by steady corporate earnings, cooling inflation expectations, and enthusiasm around the AI-driven tech boom—has prompted investors to reenter riskier assets. Gold has also seen record demand, becoming one of the most sought-after commodities this quarter.

“We have seen the gold craze hitting our customers in October, with gold reaching an all-time high,” said Yoni Assia, eToro’s CEO, in an interview with Reuters. “We also saw some rebalancing in portfolios across U.S. and European equities, and some trimming of tech holdings.”

eToro’s net contribution—which accounts for revenue after deducting crypto costs and margin interest—rose 28% year-on-year to $215 million, while adjusted profit came in at $0.60 per share, beating analysts’ estimates of $0.56 per share (LSEG data).

The company also announced a $150 million share repurchase program, signaling confidence in its growth trajectory.

eToro’s assets under administration jumped 76% year-on-year to $20.8 billion, underscoring strong retail participation supported by accessible trading apps and continuous market volatility.

Looking ahead, eToro plans to expand through acquisitions and enter prediction markets by late 2026. “We’re hungry and we have a large checkbook,” Assia said. “We’ll find the right targets to add value to our customers.”

The firm continues to face fierce competition from rivals such as Robinhood, Charles Schwab, and Morgan Stanley’s E*Trade, but Assia remains confident: “We invented social trading. Copying is the ultimate form of flattery.”

Crypto firms’ tokenized stocks spark investor protection concerns

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Crypto companies are racing to launch stock-backed tokens, but traditional financial firms and regulators are sounding alarms over potential risks to investors and market stability.

Encouraged by President Trump’s pro-crypto policies, major players such as Robinhood, Gemini, and Kraken have rolled out tokenized stock products in Europe, with Coinbase and Dinari seeking U.S. approval. Even Nasdaq has proposed offering tokenized shares — a sign that the concept is moving into mainstream finance.

These blockchain-based instruments are designed to mirror traditional equities while enabling 24/7 trading and instant settlement. Their combined market value has surged to $412 million from just a few million a year ago, according to RWA.xyz. But critics warn that many of these products lack ownership rights, dividends, and regulatory safeguards, making them more akin to derivatives than stocks.

“There’s a real risk investors don’t know what they’re buying,” said Diego Ballon Ossio, a partner at Clifford Chance. Legal experts say inconsistent rights and disclosures across issuers could undermine market integrity.

While some firms like Kraken and Ondo Finance claim to fully back their tokens with underlying assets, others — including Robinhood’s tokens pegged to OpenAI — have faced regulatory scrutiny for using derivative structures.

Regulators in both the U.S. and Europe are divided over how to classify and supervise these products. Financial groups including Citadel Securities and SIFMA argue that tokenization should not bypass investor protection rules, warning that liquidity could fragment across unregulated markets.