On February 3, 2025, President Donald Trump signed an executive order to establish a U.S. sovereign wealth fund, indicating that it could potentially acquire a stake in TikTok. This move aligns with ongoing efforts to address national security concerns associated with the app’s Chinese ownership.

The proposed fund would be managed by Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, with the aim of investing in various assets to generate profits for American citizens. The creation and operation of this fund will require congressional approval.

This development follows a temporary suspension of TikTok’s services in the U.S. on January 18, 2025, due to ByteDance’s non-compliance with divestiture requirements mandated by U.S. law. Subsequently, President Trump issued an executive order delaying the enforcement of the ban by 75 days to explore potential solutions, including the possibility of the U.S. government obtaining a 50% ownership stake in a joint venture.

Several American investors and companies, including Microsoft, have expressed interest in acquiring TikTok’s U.S. operations. Negotiations are ongoing, with a decision expected within the next 30 days.