President Trump has signed an executive order to establish a U.S. government-owned sovereign wealth fund, potentially positioning it to benefit from a TikTok deal. The fund aims to maximize the stewardship of national wealth, with the government currently holding $5.7 trillion in direct assets.

The move comes as TikTok received a 75-day extension on its ban to secure an approved American partner or buyer. Trump has suggested the possibility of the U.S. taking a 50% stake in the platform through this new fund.

Treasury Secretary Scott Bessent and Commerce Secretary nominee Howard Lutnick will oversee the fund's development, with plans to launch within 12 months, pending Congressional approval. A detailed plan must be presented within 90 days.

Currently, over 90 sovereign wealth funds worldwide manage more than $8 trillion in assets. Within the United States, 23 states 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.

The fund could potentially house various national assets beyond TikTok, with Trump noting "a lot of options" for future investments. This initiative represents a significant shift in U.S. financial policy, aligning with global practices of national wealth management.

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