President Trump signed an executive order establishing a U.S. government-owned sovereign wealth fund, potentially positioning it to benefit from a TikTok acquisition. The fund aims to "maximize the stewardship of national wealth" and could potentially manage a 50% stake in TikTok if an American partnership is formed.

The federal government currently holds $5.7 trillion in direct assets, with additional indirect assets including natural resource reserves. This move aligns with global financial trends, as over 90 sovereign wealth funds worldwide manage more than $8 trillion in assets. Within the United States, 23 states already operate their own funds, controlling $332 billion in total assets, with Alaska, New Mexico, and Texas maintaining some of the largest funds through oil, gas, and mineral revenues.

Treasury Secretary Scott Bessent and Commerce Secretary nominee Howard Lutnick will oversee the fund's creation, with plans to present a detailed proposal within 90 days. While Congressional approval will likely be required, the administration aims to have the fund operational within 12 months.

The announcement comes as TikTok received a 75-day extension on its potential ban, during which it must secure an approved partner or American buyer. Trump has suggested various options for the platform's future, including placing it within the new sovereign wealth fund or establishing partnerships with private investors.

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