Trump Orders Creation of Sovereign Wealth Fund, Hints at Potential TikTok Purchase
U.S. President Donald Trump signed an executive order on Monday directing the Treasury and Commerce Departments to establish a sovereign wealth fund, with the possibility of acquiring TikTok.
“We aim to set this up within the next 12 months, leveraging U.S. assets for the benefit of the American people,” Treasury Secretary Scott Bessent told reporters. “The fund will include a mix of liquid assets and domestic holdings, which we will work to unlock for public benefit.”
Trump had previously proposed a government investment fund during his presidential campaign, envisioning it as a means to finance major national projects such as infrastructure, manufacturing, and medical research.
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Specific details regarding the fund’s operation and financing remain unclear, but Trump has suggested it could be funded through “tariffs and other intelligent strategies.” Typically, sovereign wealth funds rely on budget surpluses, whereas the U.S. operates under a deficit.
Globally, there are over 90 sovereign wealth funds managing assets worth more than $8 trillion, according to the International Forum of Sovereign Wealth Funds.
TikTok’s Future Uncertain Amid U.S. Pressure
TikTok, which boasts approximately 170 million American users, was briefly taken offline before a law requiring its Chinese parent company, ByteDance, to either sell the platform or face a ban took effect on January 19.
After assuming office on January 20, Trump signed an executive order postponing the law’s enforcement by 75 days.
Trump has stated that discussions are ongoing regarding TikTok’s potential buyers and that a decision on the app’s fate is expected in February.
