WASHINGTON — President Donald Trump signed an executive order Monday establishing the United States’ first sovereign wealth fund, a government-owned investment fund that could potentially be used to purchase the U.S. assets of TikTok.
Treasury Secretary Scott Bessent, speaking alongside Trump, said the fund would be operational within the next year. While Trump did not specify its intended use, he suggested acquiring TikTok as one possibility.
“We’re going to be doing something, perhaps with TikTok and perhaps not, if we make the right deal,” Trump said. “But I have the right to do that, and we might put that in the sovereign wealth fund.”
It remains unclear how the U.S. would finance such a fund, as sovereign wealth funds typically rely on surplus government revenue, and the U.S. operates at a deficit. Reuters reported that congressional approval may be required due to the lack of a clear funding source.
A sovereign wealth fund is a government-owned investment fund similar to an endowment in the non-profit sector. The new fund could potentially be used to buy TikTok’s U.S. assets from its parent, ByteDance, if Chinese regulators and the company itself agreed to such a transfer.
TikTok, which was temporarily unavailable to U.S. users last month, has not yet returned to app stores, although it remains functional for users who previously downloaded it. The app went offline for about 12 hours before being restored on Jan. 19.
Trump extended a ban on the platform — originally implemented under President Joe Biden — on his first day in office, citing national security concerns. That means TikTok now faces an April deadline to find a new owner.
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