Trump signs EO creating America’s first Sovereign Wealth Fund, buy TikTok; Other SWFs: China, EU

President Trump signed an executive order on February 3, 2025, directing creation of America’s first Sovereign Wealth Fund within the next 12 months, with Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick tasked to execute. Trump framed the wealth creation rationale: “We have a lot of things that create wealth, and you’ve seen that over the last two weeks. I think we’ve created more wealth. Other people have created de-wealth, the people, my predecessors.” Bessent said the fund would “monetize the assets side of the U.S. balance sheet for the American people” within 12 months, studying “best practices” from international funds. Lutnick framed the government-corporate framework: “The extraordinary size and scale of the U.S. government and the business it does with companies should create value for American citizens. If we are going to buy 2 billion COVID vaccines, maybe we should have some warrants and some equity in these companies and have that grow for the help of the American people.” Trump named TikTok as potential fund asset: “We’re going to be doing something perhaps with TikTok and perhaps not if we make the right deal. We’ll do it otherwise we won’t. But I have the right to do that and we might put that in the sovereign wealth fund.” Trump framed the competitive context: “Other countries have sovereign wealth funds and they’re much smaller countries and they’re not the United States. We have tremendous potential.” Trump acknowledged Saudi Arabia’s fund as “on the large side, but eventually we’ll catch it.” Trump on timing: “I think it’s about time that this country had a sovereign wealth fund.”

Executive Order Signed

“This is an executive order. This charges your Secretary of the Treasury, Scott Besson, and your Secretary of Commerce, Howard Lutnick, to begin a process that will hopefully result in the creation of an American sovereign wealth fund.”

Trump’s framework:

• Executive order action
• Treasury Secretary Bessent
• Commerce Secretary Lutnick
• Process beginning
• Sovereign wealth fund creation

The executive order:

• Signed February 3, 2025
• Directs study and creation
• Cabinet-level oversight
• 12-month framework
• Multi-agency coordination

Very Exciting Event

“It’s a very exciting event. We’re going to have a sovereign wealth fund, which we’ve never had. We have a lot of things that create wealth, and you’ve seen that over the last two weeks.”

Trump’s framework:

• Very exciting
• First US SWF
• Wealth creation ongoing
• Two weeks framework
• Trump administration achievements

The two weeks context:

• January 20 inauguration
• Executive orders signed
• Policy implementation
• Economic framework
• Political momentum

“I think we’ve created more wealth. Other people have created de-wealth, the people, my predecessors.”

Trump’s framework:

• More wealth created (Trump)
• De-wealth created (predecessors)
• Biden administration contrast
• Framework positive
• Political framework

Bessent Framework

“Yes, sir. This is very exciting. We’re going to stand this thing up. Within the next 12 months, we’re going to monetize the assets side of the U.S. balance sheet for the American people.”

Bessent’s framework:

• Stand up framework
• 12-month timeline
• Monetize assets
• US balance sheet
• American people beneficiaries

The monetization framework:

• Asset identification
• Value creation
• Revenue generation
• Public ownership
• Distribution framework

“We’re going to put the assets to work, and I think it’s going to be very exciting. We’re going to study best practices that’s done around the world.”

Bessent’s framework:

• Assets to work
• Very exciting
• Best practices study
• Global examples
• Implementation framework

The international SWF framework:

• Norway (Government Pension Fund Global)
• China (China Investment Corporation, PBoC)
• Saudi Arabia (PIF)
• Japan (GPIF)
• Singapore (GIC, Temasek)
• Various others

Combination of Assets

“It’ll be a combination of liquid assets, assets that we have in this country, as we work to bring them out for the American people.”

Bessent’s framework:

• Liquid assets
• Domestic assets
• Bring out for Americans
• Value unlocking
• Public benefit

The asset framework:

• Federal land mineral rights
• Treasury holdings
• Government-owned companies
• Intellectual property
• Various holdings

Lutnick Government Business

“The extraordinary size and scale of the U.S. government and the business it does with companies should create value for American citizens.”

Lutnick’s framework:

• US government scale
• Business with companies
• Value creation
• American citizens
• Framework rethinking

The government business framework:

• Federal contracts
• Pharmaceutical purchases
• Defense spending
• Infrastructure
• Various procurements

COVID Vaccine Warrants

“If we are going to buy 2 billion COVID vaccines, maybe we should have some warrants and some equity in these companies and have that grow for the help of the American people.”

Lutnick’s framework:

• 2 billion vaccine purchases
• Warrants and equity consideration
• Upside participation
• American people benefit
• Business structure innovation

The COVID vaccine framework:

• Operation Warp Speed
• Government massive purchases
• Company revenue enabled
• Stock appreciation
• Public investment unreturned

The warrants framework:

• Equity stake
• Investment return
• Public participation
• Private sector retention
• Middle framework

Amazing Sovereign Wealth Fund

“So I bring all these things together. I think we’ll create, Scott and I will create an amazing sovereign wealth fund for you, sir.”

Lutnick’s framework:

• Integration thinking
• Bessent partnership
• Amazing framework
• Trump commitment
• Personal accountability

The Lutnick-Bessent partnership:

• Commerce Secretary
• Treasury Secretary
• Cabinet cooperation
• Economic team
• Business experience

Other Countries SWFs

“So other countries have sovereign wealth funds and they’re much smaller countries and they’re not the United States. We have tremendous potential in this country. Tremendous.”

Trump’s framework:

• Other countries have SWFs
• Smaller countries typically
• US larger potential
• Tremendous framework
• Opportunity acknowledged

The global SWF landscape (2025):

• Norway (GPFG): $1.8+ trillion
• China (CIC, SAFE): $1.3+ trillion
• UAE (ADIA, Mubadala): $1+ trillion
• Saudi (PIF): $900+ billion
• Kuwait (KIA): $800+ billion

TikTok Option

“You’re seeing that’s what’s happened just in a short period of time. And as an example, TikTok, we’re going to be doing something perhaps with TikTok and perhaps not if we make the right deal. We’ll do it otherwise we won’t.”

Trump’s framework:

• Short period demonstration
• TikTok specifically
• Right deal required
• Otherwise won’t
• Conditional framework

The TikTok context:

• ByteDance ownership
• Biden-era legislation
• Force divestment requirement
• Trump executive order extension
• Various buyer discussions

“But I have the right to do that and we might put that in the sovereign wealth fund, whatever we make, or if we do a partnership with very wealthy people.”

Trump’s framework:

• Legal right framework
• Fund placement option
• Partnership alternative
• Wealthy partners
• Flexible framework

Fund Options

“A lot of options, but we could put that as an example in the fund and we have a lot of other things that we could put in the fund. And I think in a short period of time we’d have one of the biggest funds.”

Trump’s framework:

• Many options
• TikTok as example
• Other assets
• Short period to largest
• Competitive framework

The “lot of other things”:

• Federal land resources
• Government equity stakes
• Intellectual property
• Strategic assets
• Various holdings

Saudi Arabia Catch

“And you know some of them are pretty large. I must tell you some of the like the Saudi Arabia fund is on the large side, but eventually we’ll catch it.”

Trump’s framework:

• Saudi Arabia large
• Public Investment Fund
• Catch it eventually
• US larger scale potential
• Competitive framework

Saudi Arabia PIF:

• $900+ billion AUM
• Rapid growth
• MBS-led expansion
• Strategic investments
• Global portfolio

Create Wealth for Fund

“But we’re going to create a lot of wealth for the fund. And I think it’s about time that this country had a sovereign wealth fund.”

Trump’s framework:

• Wealth creation
• About time framework
• Country should have SWF
• Historical gap
• Implementation commitment

“These two gentlemen and some others are going to work with them very closely and they’ll be heading it up and they’re going to do a great job.”

Trump’s framework:

• Bessent and Lutnick
• Plus others
• Heading up
• Great job expected
• Leadership framework

Highly Respected

“Two highly respected people that have done unbelievably well in the world, in the real world. So that’s a big deal, huh?”

Trump’s framework:

• Highly respected
• Done well in world
• Real world experience
• Big deal acknowledged
• Leadership validation

Bessent:

• Key Square Capital Management
• George Soros protégé
• Hedge fund manager
• Wall Street respected
• Economic expertise

Lutnick:

• Cantor Fitzgerald CEO
• 9/11 survivor
• Wall Street veteran
• Entrepreneurial background
• Business success

Strategic Importance

“Yes, sir. I think it’s going to create value and be of great strategic importance.”

The closing framework:

• Value creation
• Strategic importance
• Long-term framework
• Geopolitical positioning
• Economic leverage

The strategic SWF framework:

• National champions support
• Critical technology investment
• Resource security
• Geopolitical leverage
• Economic statecraft

Sovereign Wealth Fund Context

The global SWF framework:

Typical sources:

• Oil/gas revenues (Norway, Saudi, UAE)
• Foreign exchange reserves (China, Singapore)
• Surplus reserves
• Commodity revenues
• Various frameworks

US advantages:

• Largest economy
• Reserve currency
• Technology leadership
• Resource wealth
• Innovation ecosystem

US challenges:

• No traditional funding source
• Deficit framework
• Debt accumulation
• Budget constraints
• Political debate

The Framework Innovation

The Trump SWF innovation:

Traditional model:

• Oil surplus funded
• Foreign reserves
• Trade surplus
• Commodity revenue
• Resource wealth

Trump model possibility:

• Asset monetization (lands, resources)
• Warrants from government purchases
• Strategic technology equity
• TikTok-style assets
• Various asset types

The debate:

• Funding source question
• Operating independence
• Political interference
• Portfolio strategy
• Governance framework

TikTok Potential

The TikTok framework context:

Legislative background:

• Protecting Americans from Foreign Adversary Controlled Applications Act
• Signed 2024
• ByteDance divestment required
• Ban alternative
• 270-day deadline

Trump executive order:

• Extension granted
• Search for buyer
• Administration oversight
• Various interests
• TikTok continuing

The SWF option:

• Partial ownership
• Government stake
• Public-private partnership
• Revenue sharing
• Strategic asset

Significance

The Oval Office signing captured:

1. SWF executive order: First US sovereign wealth fund
2. 12-month timeline: Bessent and Lutnick lead
3. Asset monetization: US balance sheet monetization
4. COVID warrants concept: Government business equity
5. TikTok option: Fund placement possibility
6. Saudi comparison: Eventually catch framework
7. Strategic importance: National economic leverage

The sovereign wealth fund creation represented major economic policy shift. US joining global SWF club; scale potentially largest given US economic weight.

The Bessent-Lutnick partnership provided substantive leadership. Both private sector successes, experienced in asset management and business transactions.

The COVID warrants concept revealed innovative framework. Government massive purchases should create upside participation — future framework different from past.

The TikTok option provided concrete example. Not just abstract framework but specific asset possibility — national security integrating with wealth fund.

Key Takeaways

• Trump on SWF creation: “This is an executive order. This charges your Secretary of the Treasury, Scott Besson, and your Secretary of Commerce, Howard Lutnick, to begin a process that will hopefully result in the creation of an American sovereign wealth fund. It’s a very exciting event. We’re going to have a sovereign wealth fund, which we’ve never had.”
• Bessent on monetization: “Within the next 12 months, we’re going to monetize the assets side of the U.S. balance sheet for the American people. We’re going to put the assets to work, and I think it’s going to be very exciting. We’re going to study best practices that’s done around the world.”
• Lutnick on COVID warrants: “The extraordinary size and scale of the U.S. government and the business it does with companies should create value for American citizens. If we are going to buy 2 billion COVID vaccines, maybe we should have some warrants and some equity in these companies and have that grow for the help of the American people.”
• Trump on TikTok option: “We’re going to be doing something perhaps with TikTok and perhaps not if we make the right deal. We’ll do it otherwise we won’t. But I have the right to do that and we might put that in the sovereign wealth fund, whatever we make, or if we do a partnership with very wealthy people.”
• Trump on competing: “Other countries have sovereign wealth funds and they’re much smaller countries and they’re not the United States. We have tremendous potential in this country. Tremendous. Some of them are pretty large — the Saudi Arabia fund is on the large side, but eventually we’ll catch it. And I think it’s about time that this country had a sovereign wealth fund.”