President Donald Trump has signed an executive order to create a U.S. sovereign wealth fund, a government-backed investment fund that could potentially be used to acquire an interest in TikTok.
The order, signed on February 3, directs Treasury Secretary Scott Bessent and Commerce Secretary nominee Howard Lutnick to spearhead the creation of the fund, which is expected to become operational within the next 12 months.
“We have tremendous potential,” Trump said during the signing ceremony in the Oval Office, highlighting the economic and strategic benefits the fund could provide. Bessent, standing alongside the president, echoed this sentiment, stating, “I think it’s going to create value and be of great strategic importance.”
Sovereign wealth funds are government-owned investment entities typically financed by surplus reserves or revenues generated from natural resources. They are commonly used to support national economic initiatives and can act as venture capital instruments, investing in various industries. Countries such as Norway, China, Abu Dhabi, Qatar, Singapore, and Hong Kong have long utilized sovereign wealth funds to bolster their economic influence and financial security.
Trump’s decision to establish the fund comes amid ongoing discussions regarding the future of TikTok in the United States.
On his first day back in office, he issued an executive order delaying a ban on the video-sharing app for 75 days to allow for a thorough review of the platform’s ownership and its implications for national security. Under a federal law passed in April last year, TikTok is required to separate from its Beijing-based parent company, ByteDance, or face an outright ban in the U.S.
Trump, who previously supported measures to remove TikTok from U.S. markets, has since softened his stance, citing the platform’s role in reaching young voters during the 2024 election.
“I guess I have a warm spot for TikTok that I didn’t have originally,” he remarked while signing an order on January 20, underscoring the app’s widespread use by 170 million Americans. He further expressed his intent to find a solution that balances national security concerns with the preservation of the platform’s access in the U.S.
While no formal acquisition plans have been announced, Trump has confirmed that Microsoft has shown interest in purchasing TikTok.
During remarks on January 27, he alluded to “a lot of interest in TikTok,” though he stopped short of providing details on other potential buyers.
The creation of a sovereign wealth fund signals a shift in the United States’ approach to economic strategy, aligning it with global counterparts that leverage such funds for economic expansion and financial stability.
Whether the fund will ultimately be used to acquire TikTok remains uncertain, but the move underscores the administration’s focus on controlling key digital assets and maintaining technological influence in an increasingly competitive global market.