On Monday, President Donald Trump signed an executive order to establish the first sovereign wealth fund in the United States, which may be used to buy TikTok.

Secretary of the Treasury Scott Bessent joined Trump in the Oval Office, stating that the fund is expected to be in operation within the next year.

Although Trump did not specify the exact purposes of the fund, he mentioned that acquiring TikTok could be one possibility.

“We may do something with TikTok, or maybe not, depending on the deal we can strike,” Trump told reporters on Monday. “But I have authority to pursue that through the sovereign wealth fund.”

What Exactly is a Sovereign Wealth Fund?

A sovereign wealth fund is a government-managed investment fund that invests in foreign assets. In relation to TikTok, this newly established fund could potentially be utilized to buy the U.S. operations of TikTok from its Chinese parent company, ByteDance, should they choose to sell.

Funding for a sovereign wealth fund, as per Reuters, may originate from surplus reserves, trade surpluses, foreign currency transactions, privatization proceeds, and government transfer payments.

The largest sovereign wealth fund globally is the Government Pension Fund Global of Norway, which had over $1.7 trillion as of January, according to Investopedia. This fund was established in 1990.

Where Does TikTok Stand Now?

On his first day back in office, President Donald Trump signed an executive order that prolonged the ban on TikTok first instituted by former President Joe Biden last year. Trump’s action provided a 75-day extension, allowing him to consult with advisors and relevant department heads about national security concerns linked to TikTok.

Under the ban enacted by Biden, ByteDance had until January 19 to divest from TikTok. This decision followed years of apprehension from U.S. officials regarding TikTok’s potential national security risks, due to worries that ByteDance might be sharing American user data with the Chinese government. TikTok has consistently refuted these allegations.

On January 18, the platform became inaccessible on both mobile devices and desktops, and it was removed from the Apple App Store and Google Play Store. However, just over 12 hours later, TikTok was made available again after Trump assured that there would be no repercussions for companies distributing the app.

Since then, TikTok has remained accessible for users, although it has still not been available for download from app stores as of Monday.

Greta Cross is a national trending reporter. Follow her on X and Instagram @gretalcross.