US eyes buying TikTok as Trump signs order to set up sovereign wealth fund
1. "We're going to monetise asset side of US balance sheet for the American people," says Treasury Secretary
WASHINGTON: US President Donald Trump has signed an executive order to establish a sovereign wealth fund, which he believes could potentially be used to acquire TikTok. The order directs the US Treasury and Commerce Departments to create the fund, which aims to generate revenue from government assets.
"We plan to set this up within the next 12 months. We're going to monetize the asset side of the US balance sheet for the American people," Treasury Secretary Scott Bessent told reporters.
The fund will combine liquid assets with other domestic resources to generate revenue for the American people.
Trump had previously proposed the idea of such a government investment fund during his presidential campaign, suggesting it could help finance major national initiatives like infrastructure projects, including highways and airports, manufacturing, and medical research.
While specifics on the fund's operation and financing are not yet available, Trump has indicated it could be funded through "tariffs and other intelligent things." Typically, sovereign wealth funds are financed by a country's budget surplus, though the US operates with a deficit.
Globally, over 90 sovereign wealth funds manage more than $8 trillion in assets, according to the International Forum of Sovereign Wealth Funds.
TikTok, with around 170 million American users, was temporarily taken offline before a law requiring its Chinese parent company, ByteDance, to either sell the app or face a ban on national security grounds went into effect on January 19.
After taking office on January 20, Trump signed an executive order delaying the enforcement of the law by 75 days.
Trump has stated that he is in discussions with multiple parties regarding the potential purchase of TikTok and expects to make a decision about the app's future in February.
