President Donald Trump signed an executive order on Monday to begin establishing a sovereign wealth fund.
“We’re going to create a lot of wealth for the fund, and I think it’s about time this country had a sovereign wealth fund,” Trump told reporters in the Oval Office, calling the development “very exciting.”
He added, “I think in a short period of time, we’d have one of the biggest funds.”
HAPPENING NOW: President Trump signs an Executive Order calling for the creation of a Sovereign Wealth Fund💸 pic.twitter.com/sMkBg3bUwX
— Karoline Leavitt (@PressSec) February 3, 2025
Trump announced that his Treasury Secretary, Scott Bessent, and Howard Lutnick, his nominee to lead the Commerce Department, would oversee the fund.
Learn more about what the fund is and Trump’s plans for it below.
What Is a Sovereign Wealth Fund?
A Sovereign Wealth Fund (SWF) is a government-owned investment fund that manages a country’s financial assets and invests in various types of financial assets. These funds typically originate from surpluses, such as revenues from natural resources (like oil or gas), foreign currency reserves, or national savings.
Bessent explained that the fund’s creation would “monetize the asset side of the U.S. balance sheet for the American people.” He also stated that the sovereign wealth fund would be operational within 12 months, aiming to put U.S. assets to work for the benefit of Americans.
Which Countries Have a Sovereign Wealth Fund?
Some of the largest sovereign wealth funds are managed by countries like Norway, with its $1.8 trillion Norges Bank Investment Management; China, which oversees the $1.3 trillion China Investment Corporation; and the UAE, home to the $1.1 trillion Abu Dhabi Investment Authority.
Can the US Sovereign Wealth Fund Buy TikTok?
The Trump administration provided few details on how the sovereign wealth fund might be used to purchase TikTok.
President Trump mentioned that “we’re going to be doing something perhaps with TikTok, and perhaps not,” though he had previously hinted at the possibility of the U.S. government playing a role in the sale of the social media app.
Is TikTok Banned in the United States?
TikTok was banned in the U.S. after lawmakers raised concerns about the app’s security, fearing that the Chinese government could access American users’ data and potentially spread misinformation. The ban was set to take effect on January 19, but the app went dark around 10:30 p.m. ET on January 18. However, in an unexpected turn, TikTok was restored by the following day.
After resuming service, TikTok released a statement explaining that an “agreement” had been made with providers to bring the app back to U.S. users. The platform also expressed gratitude to President Trump for his involvement in the matter.
As of now, it seems no company has yet purchased TikTok from its parent company, ByteDance. President Trump has simply delayed the enforcement of the ban by signing an extension, pushing back the deadline for a potential forced sale or shutdown.
