Trump moves to create sovereign wealth fund, eyeing TikTok: What to know

President Donald Trump signed an executive order on Monday to create what he described as a sovereign wealth fund.

For example, Trump believes he could use TikTok to create an SWF if he finds an American buyer. 

What is a sovereign wealth fund? 

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A sovereign wealth fund (SWF) is an investment vehicle owned by a country’s government that "buys, holds, and sells securities and/or assets on behalf of its citizens in pursuit of financial and/or economic returns," according to Global SWF’s website.

Trump signed an order on his first day in office to grant the Chinese-owned TikTok until early April to find a domestic partner or buyer, but he's said he's looking for the U.S. to take a 50% stake in the massive social media platform. He said Monday in the Oval Office that TikTok was an example of what he could put in a new U.S. sovereign wealth fund.

What they're saying:


"We might put that in the sovereign wealth fund, whatever we make or we do a partnership with very wealthy people, a lot of options," Trump said of TikTok. "But we could put that as an example in the fund. We have a lot of other things that we could put in the fund."

Treasury Secretary Scott Bessent and Howard Lutnick, Trump’s nominee for commerce secretary, would be responsible for establishing the fund over the next 12 months.

"I think it’s going to create value and be of great strategic importance," Bessent told reporters at the signing.

Future US SWF

Former President Joe Biden’s administration had dug into the possibility of creating a sovereign wealth fund for national security investments, but the idea didn’t yield any concrete action before he left office. 

What we know:


Bessent said the administration’s goal was to have the fund open within the next 12 months. 

What we don't know:


Outside of TikTok and vaccine manufacturers, Trump’s administration didn’t share many ideas as to how the fund would be operated and financed. 

Other SWFs around the world 

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There are over 90 sovereign wealth funds around the world that mange over $8 trillion in assets, according to The International Forum of Sovereign Wealth Funds, a London-based organization made up of roughly 50 of these entities.

In the U.S., more than 20 sovereign wealth funds exist at the state level, according to analysis from the Center for Global Development, a Washington-based nonpartisan think-tank.

The largest ones — based in Alaska, New Mexico and Texas — are financed through revenue that comes from oil, gas and mineral proceeds and used to fund in-state programs, such as education. Though these funds are owned by governments, they tend to operate as standalone institutions with their own investment strategies and staff, the center said.

As of 2025, the top five most sizeable SWFs are: 

  1. The People’s Bank of China (PBoC): China
  2. Norges Bank Investment Management (NBIM): Norway
  3. The Government Pension Investment Fund (GPIF): Japan
  4. China Investment Corporation (CIC): China
  5. European System of Central Banks (ECB): European Union

TikTok latest

FILE - The logo of TikTok is displayed on mobile phone screen in front of a computer screen displaying United States President Donald Trump in Ankara, Turkiye on January 30, 2025. (Photo by Muhammed Selim Korkutata/Anadolu via Getty Images)

Last week, Trump confirmed that Microsoft was in talks to acquire TikTok. 

The announcement came days after TikTok briefly went offline as new a new law requiring its sale to a U.S.-based company or a nationwide ban approached its enforcement deadline. 

Trump signed an executive order granting the popular app 75 days of reprieve to continue operating in the U.S. to allow its parent company, ByteDance, to secure a buyer. 

The Source: Information for this article was gathered from The Associated Press, previous reporting from LiveNOW from FOX, and the Global SWF website. This story was reported in Los Angeles. 

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