President Trump has signed an executive order establishing a U.S. government-owned sovereign wealth fund, potentially positioning it to profit from a TikTok deal. The fund aims to "maximize the stewardship of national wealth" and could be used to manage a possible 50% stake in TikTok, following the platform's recent 75-day ban extension to secure an American buyer.

The U.S. Federal government currently holds $5.7 trillion in direct assets, with additional indirect assets including natural resource reserves. Globally, over 90 sovereign wealth funds manage more than $8 trillion in assets, while 23 U.S. states maintain funds controlling $332 billion, primarily funded through oil, gas, and mineral revenues.

Treasury Secretary Scott Bessent and Commerce Secretary nominee Howard Lutnick will oversee the fund's creation. While Congressional approval is likely needed, a detailed plan must be presented within 90 days, with the administration aiming to launch the fund within 12 months.

The fund could accommodate various national assets beyond TikTok, with Trump noting, "We have a lot of other things we could put in the fund." This initiative positions the United States to join other nations in leveraging sovereign wealth funds for national economic benefit.

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