President Trump has signed an executive order to create a US sovereign wealth fund, which could potentially acquire a stake in TikTok. The new investment fund aims to invest in various assets and generate revenue for the US economy.
President Donald Trump has signed an executive order directing the creation of a government-owned investment fund, which could potentially own part of ‘TikTok’.
The new fund aims to invest in various assets, including stocks, bonds, and real estate.
The idea behind the sovereign wealth fund is not new. Many countries have similar funds that manage massive amounts of assets. According to the International Forum of Sovereign Wealth Funds, there are over 90 such funds worldwide, with a combined value of more than $8 trillion. In the United States, several states already have their own sovereign wealth funds, which invest in various assets and generate revenue for state programs.
President Trump believes that the US could eventually top Saudi Arabia‘s fund size, which is currently one of the largest in the world. He has tasked Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick with laying the groundwork for creating the fund. The two officials will submit a plan to the President within 90 days, including recommendations for investment strategies and a governance model.
The new fund could potentially own part of ‘TikTok’ if the US government is successful in finding an American buyer for the social media platform. Trump has said that he’s looking for the US to take a 50% stake in ‘TikTok’, which is owned by China-based ByteDance.
TikTok is a social media platform that allows users to create and share short-form videos.
Launched in China in 2016 under the name Douyin, it quickly gained popularity worldwide after its international launch in 2018.
As of 2022, TikTok has over a billion active users, making it one of the fastest-growing social media platforms.
The app is known for its creative and entertaining content, often featuring music, dance, and comedy videos.
Its algorithm uses AI to learn user preferences, serving them content that is highly engaging and addictive.
Commerce Secretary Lutnick has suggested another potential use for the fund: taking a profit-earning stake in vaccine manufacturers. This could help the government generate revenue from investments in companies that produce life-saving vaccines.
The creation of the sovereign wealth fund will require congressional approval, but President Trump is optimistic about its prospects. He believes that the fund will create value for American citizens and help the US economy grow.
TikTok was supposed to be banned in the US last month under a federal law that forces ByteDance to divest its stakes or face a ban. However, the company and some users took legal action against the statute, which was ultimately upheld by the Supreme Court. The Trump administration has given TikTok more time to work out a deal with the government.
Several investors, including billionaire ‘Frank McCourt‘ and former Treasury Secretary ‘Steven Mnuchin’, have expressed interest in purchasing TikTok’s US platform. Microsoft is also reportedly eyeing the social media company. A San Francisco-based artificial intelligence startup called Perplexity AI has even presented a proposal to ByteDance that would allow the US government to own up to 50% of an entity combining ‘TikTok’‘s US platform with its business.
The future of TikTok and the creation of the sovereign wealth fund remain uncertain, but President Trump is confident that the new investment fund will be a success.
