US President Donald Trump gave the treasury and trade sections 90 days to reach a plan to create a Sovereign wealth fund (SWF).

“We will create a lot of wealth for the box,” Trump told reporters. “I think it is time for this country to have a sovereign wealth fund.”

He also suggested that the box can be used to buy Tiktok.

“We will do something, perhaps with Tiktok, and maybe not,” Trump said. “If we conclude the correct deal, we will do so. Otherwise, we will not … we may put it in the sovereign wealth box.”

Here is a look at what we know about Trump’s SWF plan.

What is the sovereign wealth box?

Governments and the use of sovereign wealth funds for investment in global assets for long -term growth.

The official definition created by the International Forum for sovereign wealth funds (IFSWF) is described as three elements:

• The country’s government, including federal governments and state governments, owns.
• The fund includes investments in foreign financial assets.
• The fund makes investments taking into account the financial goals, as is the case in infrastructure and economic development.

According to IFSWF, the main elements of SWFS do not include public pension funds, which are ultimately owned by people who are entitled to obtain advantages, or foreign currency reserves that the Central Bank of the country, which is used primarily in stability money instead of investing.

SWF can act as an investment account for the benefit of the long -term nation; Fixing tool, saving money that can be extracted from when the budget requires it; Development tool to support economic policy; Or a mixture of three.

Ultimately, it was designed to be an egg, allowing the current excess funds in favor of future generations. It has been used by countries rich in traditional commodities to invest in profits of oil and natural gas sales, minerals and minerals for the future. According to IFSWF, about 60 percent of the money comes from natural resource revenues.

Unlike pension funds, from which people withdraw money as an income to support themselves in retirement, it is supposed to invest SWFS for the collective goodness of the nation.

This may mean financing the construction of an airport, school, or infrastructure. SWFS often invests in financial products and purchasing risks in companies, which can provide long -term economic security and financing government budgets or social programs.

Where will the money come from to create an American fund?

Trump was mysterious about the size of any American sovereign wealth box or how it would be funded.

The president’s executive order directs the departments of trade and treasury to include the recommendations of the plan for financing mechanisms, investment strategies, money structure and governance form.

Treasury Secretary Scott Payette told reporters that the fund will be created within the next 12 months, but he also did not specify where the money will come.

“We will praise the side of the assets in the American public budget for the American people,” Pesin said. “There will be a mixture of liquid assets, and the assets we have in this country and we are working to take it out to the American people.”

Stan Figer, a older colleague at the American Projects Institute, said that the assets that were referring to the assets that were indicating may include property and even the government Bitcoin possesses.

The United States has seized at least 215,000 Bitcoin coin involved in criminal activity, at a value of approximately $ 21 billion at current prices, since 2020, according to Crypto 21.Co. Trump suggested last year that he might have plans for the encryption reserve similar to the oil reserves.

“Bitcoin Holdings” can be the basis of the sovereign wealth box, although its value is relatively modest. “

What other countries have created SWFS?

According to IFSWF, more than 90 such is running more than $ 8 trillion of assets worldwide.

The largest fund is the government pension fund in Norway, which has $ 1.74 trillion assets, followed by China Investment Corporation, by 1.33 trillion dollars, according to the Sovereign Wealth Fund Institute, which is a data provider.

The institute said that Abu Dhabi, Kuwait, Saudi Arabia and Singapore are among other countries with prominent sovereign wealth funds, with assets ranging between 801 billion dollars and 1.06 trillion dollars.

Is SWF setting a good idea for the United States?

Trump is not the first to think about SWF preparation for the United States.

The administration of former President Joe Biden was also considering creating such a fund before Trump was elected in November, according to the New York Times and Financial Times.

Trump praised the idea of ​​establishing the fund, saying that he could fund “great national efforts” such as infrastructure projects, including highways, airports, manufacturing and medical research.

Some investors at Wall Street said the news was a surprise and wondered whether it was a good idea.

SWF is usually funded by the surplus boxes in a country-whether it was selling natural resources or from the budget spending. However, the United States has been constantly managing a budget deficit since 2001. It has succeeded in a deficit of $ 1.8 trillion in the fiscal year 2024, which was $ 138 billion – 8 percent – more than the previous year. It is possible that the creation of a sovereign wealth box is likely to approval from Congress.

“The creation of a sovereign wealth box indicates that the country has savings that will rise and can be dedicated to this,” said Colin Graham, head of multiple asset strategies at Robeco in London. “The economic rules of the thumb do not add.”

“There is also a risk that the fund manager will make bad investments with it,” said Veuger, of the Enverrise American, said that there is also a risk that the fund manager will make bad investments with it.

“There is no reason to believe that SWF in the United States can constantly overcome the market as long as it does not use its political strength,” he said. “I don’t think it’s a good idea for the United States.”

There is also a general criticism of SWFS. According to a report published by The Carnegie Endowment International Peace, many SWS lack transparency, raising concerns about corruption and political intervention.

The sovereign wealth funds said: “Without detailed financial and operational information, the door is left open to the Griffin managers and political elites to offend the use of investment profits.”

“This lack of SWFS cannot make vulnerable to corrupt uses, but at the level of macroeconomic economy, it also raises the specter of real risk of destabilizing if the money fails, money is managed, or funding quickly from the targeted markets,” he added.

Is it possible to use SWF to buy Tiktok?

Trump suggested that the wealth box can buy Tiktok, but no firm plans have been announced to do so. The fate of the company in the United States has not been certain since January 19, when the law that requires its Chinese owner, Buenots, was sold on national security or a ban.

After taking office on January 20, Trump signed an executive order seeking to delay law enforcement by 75 days.

Trump said he is holding talks with many people about the purchase of Tiktok and may have a decision on the future of application this month. The famous app contains about 170 million American users.