President Trump has signed an executive order to establish a U.S. government-owned sovereign wealth fund, potentially aimed at managing TikTok investments. The fund would help "maximize the stewardship of national wealth" according to the order.

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

Key details about the sovereign wealth fund:

• The U.S. Federal government currently holds $5.7 trillion in direct assets
• Treasury Secretary Scott Bessent and Commerce Secretary pick Howard Lutnick will oversee the fund's creation
• Administration aims to launch within 12 months
• Congressional approval likely required
• Plan must be presented within 90 days

Global context:

• Over 90 sovereign wealth funds exist worldwide
• These funds manage more than $8 trillion in combined assets
• 23 U.S. states already maintain their own funds
• State funds control $332 billion in total assets
• Largest U.S. state funds: Alaska, New Mexico, and Texas
• State funds primarily funded through oil, gas, and mineral revenue

The fund could potentially manage various government assets beyond just TikTok investments, though specific details about other potential investments haven't been announced.

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