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U.S. Creates Sovereign Wealth Fund With Potential To Acquire TikTok

In a surprising move, U.S. President Donald Trump has signed an executive order to create a sovereign wealth fund within the next 12 months, which could include the acquisition of the popular short-video app TikTok. The fund’s purpose would be to manage U.S. assets and generate wealth for the nation, with Trump promising it would benefit American citizens.

The sovereign wealth fund could be structured similarly to other such funds in countries across the globe, particularly in the Middle East and Asia, which use them to make direct investments. While the executive order provided little detail on the fund’s operations, it directed the U.S. Treasury and Commerce Departments to submit a comprehensive plan, including funding mechanisms and investment strategies, within 90 days.

Trump has previously expressed support for creating a government-backed investment vehicle during his presidential campaign. He envisioned it as a tool to fund key national projects such as infrastructure, manufacturing, and medical research. The fund would likely be financed through innovative sources, including tariffs, though no clear explanation has been provided yet on its structure or funding.

In contrast to typical sovereign wealth funds, which rely on a country’s budget surplus, the U.S. operates at a deficit, which makes the funding approach more complex. Treasury Secretary Scott Bessent emphasized that the fund’s creation would focus on monetizing U.S. assets, particularly those on the country’s balance sheet. However, many experts believe that the creation of such a fund would require Congressional approval, as it may involve legislation to authorize new funding sources.

The possibility of the fund purchasing TikTok has drawn significant attention. Trump suggested that the fund might acquire the social media platform, which has around 170 million U.S. users, after its ownership by Chinese company ByteDance became a subject of national security concerns. A law mandating ByteDance to sell its U.S. assets or face a ban took effect in January, but Trump has delayed its enforcement by 75 days, citing ongoing negotiations. Trump stated that if a suitable deal could be reached, TikTok would potentially become part of the sovereign wealth fund. However, he also indicated that this was not a certainty, leaving the decision still to be made.

This announcement follows reports that the Biden administration had also explored the idea of establishing a similar fund. However, as Trump’s plan unfolds, it remains uncertain whether it will materialize within the expected timeframe. Sovereign wealth funds manage over $8 trillion globally, and with this new initiative, the U.S. could join the ranks of nations leveraging such funds for national investment purposes.

Cash App Targets Gen Alpha With Innovative Youth Financial Services

Expanding the Fintech Frontier

Cash App, the fintech division of Block, is expanding its services to younger users by introducing accounts for children aged six to 12. The move builds on its existing teen offering and reflects a broader push to engage users earlier in their financial lifecycle.

Program Overview And Features

The new initiative allows parents to create and manage accounts for children, retaining full control over deposits, spending, and account activity. Each account includes a debit card linked to the parent-controlled profile, enabling supervised transactions.

Functionality includes limited peer-to-peer payments restricted to approved contacts, such as family members. Accounts may also earn interest of up to 3.25%, introducing basic concepts of saving and financial growth.

Pathway To Broader Financial Engagement

According to Kristen Anderson, Group Product Lead for Core Networks at Cash App, early exposure to financial tools can support long-term financial literacy. The program includes features such as automated allowances, allowing parents to schedule recurring transfers and introduce budgeting habits.

As users reach the age of 13, they can transition to teen accounts with expanded functionality. Additional services, including stock trading and cryptocurrency access, become available under parental supervision until adulthood.

Industry Perspective

Cash App already reports nearly 5 million monthly active teen users, providing a foundation for further expansion into younger segments. The initiative reflects a wider industry trend, as fintech platforms explore ways to onboard users earlier. While similar efforts have raised regulatory and ethical considerations, proponents argue that structured, supervised access can help build financial awareness over time.

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