US President Donald Trump has signed an executive order directing the creation of a US sovereign wealth fund, with plans to potentially acquire TikTok.
While details about the fund’s structure and financing remain scarce, Trump’s plan could reshape the way the US approaches national investments and even influence the future of TikTok in the country.
Trump first proposed sovereign wealth fund the idea in 2016
Treasury Secretary Scott Bessent confirmed the plan, stating that the US Treasury and Commerce Departments would work together to set up the sovereign wealth fund within the next 12 months.
President Donald Trump signed an executive action he said would direct officials to create a sovereign wealth fund for the US, following through on an idea he floated during the campaign trib.al/gFPWrqL
According to Bessent, the fund will consist of both liquid and non-liquid assets, allowing the US government to tap into domestic resources.
“We’re going to monetize the asset side of the US balance sheet for the American people,” Bessent added, emphasizing that the fund would provide new financial avenues for national growth.
Trump first proposed the idea of a sovereign wealth fund during his 2016 presidential campaign, envisioning it as a vehicle to fund essential national projects, such as infrastructure development, manufacturing, and medical research.
This new initiative aligns with his past views on utilizing government-controlled investments to foster economic prosperity.
While specifics on how the fund will be financed remain unclear, Trump previously suggested that tariffs and other sources of revenue could help fund the initiative, despite the US operating at a deficit rather than a budget surplus, which is the typical funding model for sovereign wealth funds.
Globally, sovereign wealth funds manage over $8 trillion in assets, with more than 90 such funds operating worldwide.
BREAKING: PRESIDENT TRUMP SIGNS AN EXECUTIVE ORDER TO CREATE A UNITED STATES SOVEREIGN WEALTH FUND
Oh my goodness…
For some context, Saudi Arabia’s sovereign wealth fund has about $925B in AUM.
Norway’s fund has $1.8T in AUM.
Looks like Trump wants the US to have our own…
These funds typically invest in diverse assets, including infrastructure, foreign equities, and real estate, to secure long-term financial growth.
Trump’s plan for a US version could potentially change the way the country engages with both domestic and international markets.
Potential investments is TikTok
One of the key items Trump has highlighted as part of the US sovereign wealth fund’s potential investments is TikTok, the viral app owned by the Chinese company ByteDance.
With over 170 million users in the US, TikTok has become a significant player in the digital space, but its future in the US is uncertain.
In January, a law was set to take effect that would require ByteDance to sell TikTok or face a ban due to national security concerns.
However, Trump signed an executive order delaying the law’s enforcement by 75 days, giving him time to explore options for the app’s future in the US.
Trump has stated that he has been in talks with various parties about acquiring TikTok and that a decision on the app’s fate is likely to come in February.
If the sovereign wealth fund is utilized to purchase TikTok, it could reshape the social media landscape, allowing the US to maintain control over one of the world’s most popular apps and provide a significant boost to the sovereign wealth fund’s assets.
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