U.S. President Donald Trump signed an executive order on Monday, directing the U.S. Treasury and Commerce Departments to establish a sovereign wealth fund, stating that it may potentially acquire TikTok.
“We’re going to set this up within the next 12 months. We will monetize the asset side of the U.S. balance sheet for the American people,” Treasury Secretary Scott Bessent told reporters. “It will be a combination of various assets, which we will work to bring out for the benefit of the American people.”
Trump had previously proposed such a government investment vehicle as a presidential candidate, suggesting it could fund “great national endeavors” such as highways, airports, manufacturing, and medical research.
Specific details on how the fund would operate and be financed were not immediately available, but Trump previously mentioned that it could be funded through “tariffs and other intelligent measures.” Typically, such funds rely on a country’s budget surplus for investments, but the U.S. operates at a deficit.
According to the International Forum of Sovereign Wealth Funds, there are over 90 such funds worldwide, managing assets worth over $8 trillion.
TikTok, which has approximately 170 million American users, was briefly taken offline before a law came into effect on January 19, requiring its Chinese owner, ByteDance, to either sell it due to national security concerns or face a ban.
After assuming office on January 20, Trump signed an executive order seeking to delay the law’s enforcement by 75 days.
Trump has stated that he is in discussions with multiple parties regarding TikTok’s purchase and will likely decide on the popular app’s future in February.
