Lock the White House Watch Newsletter for free
Your Guide to What Trump’s Second Season Means Washington, Business and World
The son of Softbank founder Masayoshi came to the idea of establishing a US Joint Sovereign Fund to make large investments in high-tech and infrastructure across the United States.
The idea has been raised at the highest political level in Washington and Tokyo, according to three people close to the situation, and could be a template for other governments to develop closer investment relationships with the United States.
The plan, which has been discussed directly between his son and U.S. Treasury Secretary Scott Bescent and outlined by other government figures in both countries, has yet to crystallize into a formal proposal, according to three people close to the situation.
However, the idea for a joint fund has been raised several times in recent weeks as Japanese negotiators and the Trump administration are heading towards a trade deal. Japan has devised a position to promote zero tariffs, but the US has made it clear that it will not be lower than the 10% “baseline” tariff.
But following a call between Donald Trump and Japanese Prime Minister Isgar on Friday, the latter told domestic media that it expects the two meetings, which are bystanders of the G7 conference held in Canada in mid-June, to be a “milestone” in negotiations.
Under the proposed wealth fund structure, the US Treasury and Japanese Treasury will become co-owners and operators of funds, each of which have large investments. They may then open the vehicle to other limited partner investors and offer ordinary Americans and Japanese people the opportunity to own slices.
One person familiar with the argument said that the fund would have to be “huge” to be effective in its investment ambitions. It was $300 million in initial capital and was heavily leveraged.
Those who explained the details said the Joint Fund’s appeal stems from its ability to deliver revenue streams to both governments.
“The theory is that Bessent is looking for a source of revenue for the Treasury that doesn’t involve raising taxes, and while this joint fund may sound, it would theoretically provide it,” explains the situation, which one thinks is taking a clear break from its previous strategy.
The person added that Bescent believes “who wants something that can be a blueprint for financial architecture from a new sovereign to a sovereign, but Japan wants a properly governed contract that protects Japan from ad-hoc political decisions of class offices.”
In the past, the US government, or individual states, added that large direct investors will provide tax incentives to build factories or infrastructure projects. The expectation behind that strategy was that the government would receive taxes indirectly at some point. However, investments made by the assumed joint fund will directly benefit proportionately to the original investment.
My son was a prominent visit to the home of President-elect Mar-a-Lago in December, near Trump. He said it was at the heart of the joint fund proposal, the two said it was close to the situation and may hope to ultimately play a role in directing the fund’s investment decision.
The SoftBank boss is used to making high-stakes bets and stood by Trump in January to announce a $500 million Stargate plan to build US data centers and artificial intelligence infrastructure with Openai and Oracle. One of those familiar with my son’s ideas is a kind of project that can attract investment from the proposed Wealth Fund.
A spokesman for the Treasury declined to comment. SoftBank declined to comment.
