On Monday, President Donald Trump issued an executive order to launch the United States’ first sovereign wealth fund, which could potentially be utilized to acquire TikTok.

During a meeting in the Oval Office, Treasury Secretary Scott Bessent mentioned that the fund is expected to be active within the coming year.

While Trump did not specify all the potential uses for the fund, he mentioned that buying TikTok could be one possibility.

“We’re considering options, maybe with TikTok, but that’s if we strike the right deal,” Trump informed reporters on Monday. “I have the authority to do this, and it might be incorporated into the sovereign wealth fund.”

What is a sovereign wealth fund?

A sovereign wealth fund is a fund owned by the government that invests in foreign assets. In the scenario of TikTok, this newly proposed fund could be used to acquire the U.S. assets of TikTok from its Chinese parent company, ByteDance, should they choose to sell.

The largest sovereign wealth fund globally is Norway’s Government Pension Fund Global, which held over $1.7 trillion as of January, according to Investopedia. This fund has been in existence since 1990.

How would a sovereign wealth fund function?

It remains uncertain how the U.S. might establish a sovereign wealth fund, as such funds typically depend on a budget surplus while the U.S. is operating at a deficit, as reported by Reuters. Additionally, initiating this fund would likely require Congressional approval due to uncertainties surrounding funding sources.

“You can’t simply create an institution through executive order, and you certainly can’t provide funding for it in that same manner,” stated Clemence Landers, a former official at the Treasury now working with the Center for Global Development, to Reuters.

Trump previously proposed the concept of a sovereign wealth fund during his presidential campaign, suggesting that it could be financed through “tariffs and other smart strategies.”

Bessent noted on Monday that “the fund will consist of a mix of liquid assets and those we possess in the country, aimed at benefiting the American people.”

“We’re aiming to capitalize on the asset portion of the U.S. balance sheet for the American populace,” Bessent told reporters.

What is the latest on TikTok?

On his first day back in office, President Donald Trump signed an executive order extending the TikTok ban that was enacted by former President Joe Biden last year. This new order provides a 75-day extension for Trump to consult with his advisors and heads of “relevant” departments regarding the national security risks that TikTok may pose.

The ban established under Biden directed ByteDance to divest TikTok by Jan. 19. This decision arose after years of apprehension among certain U.S. government officials regarding TikTok’s potential threat to national security, due to concerns that ByteDance may be sharing U.S. user information with the Chinese government. TikTok has consistently denied these allegations.

On Jan. 18, TikTok became inaccessible, both on mobile devices and desktop computers. The app was also removed from the Apple App Store and Google Play Store. However, just over 12 hours later, its functionality was restored after Trump assured that companies distributing the app would not face adverse consequences.

TikTok has remained operable since then, though as of Monday, it was still not available for download from app stores.

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