A Big Artificial Intelligence Deal
Several factors position Fannie Mae and Freddie Mac as the optimal starting point for the SWF (the upcoming and anticipated U.S. Sovereign Wealth Fund). This could be massively beneficial in a roundabout way for bitcoin, too.
Trump is positioning the mortgage giants for one of the largest secondary offerings in market history—in November 2025. The demand for the combination of these mortgage giants will likely be off the charts. FMT is near certain the combined entity of Fannie Mae and Freddie Mac – dubbed The Great American Mortgage Corporation by project MAGA – will be the first large addition to the SWF.
The United States Secretary Treasurer, Scott Bessent, has made public comments that funding for the SWF should happen by early 2026 (or sooner). For several political appeasing reasons, the Great Mortgage Corporation without doubt makes the most sense as the initial and largest contribution to the SWF.
- Immediate and Substantial Value Generation: Unlike controversial asset sales or debt to fund assets for the SWF, which could take years to materialize, privatizing the GSEs offers a quick infusion of capital. FMT estimates the government could recoup $250 billion or more through an IPO or stake sale (the “Secondary”), providing a robust foundation for the fund without exacerbating deficits. This revenue stream is already “baked in,” stemming from the GSEs’ profitable operations. The GSE’s are two of the most profitable businesses on the planet.
- Minimizing Political and Environmental Risks: Other proposed funding mechanisms, such as selling federal lands or monetizing oil reserves, face fierce opposition from conservationists and lawmakers concerned about public access and ecological impacts. In contrast, GSE privatization involves financial assets rather than tangible public resources, reducing controversy. It also fulfills long-standing Republican goals of shrinking government’s role in the housing market, appealing to Trump’s base.
- Strategic Alignment with SWF Objectives: The SWF is envisioned as a tool for long-term economic security and global competitiveness. By seeding it with GSE proceeds, the fund could invest in domestic priorities like bitcoin sovereign dominance (another Trump agenda) or housing development, echoing Trump’s “America First” agenda. Moreover, retaining implicit government guarantees on GSE-backed mortgages ensures housing market stability, preventing disruptions that could arise from abrupt changes.
- Precedent and Feasibility: Sovereign wealth funds worldwide often start with state-owned enterprises or financial holdings. Transferring GSE stakes mirrors how countries like Norway funded its oil-based fund. Trump’s team, including Treasury Secretary Scott Bessent, has the expertise to execute this swiftly, with plans potentially ready by early 2026 or sooner. Given Trump’s recent November 2025 timeline to monetize the GSE’s, all seems to be going according to plan!
This is a Bold Step Toward Fiscal Independence
As the U.S. grapples with mounting debt and global competition, establishing a sovereign wealth fund represents a forward-thinking strategy. Starting with Fannie Mae and Freddie Mac not only provides a high-value, low-controversy contribution but also signals a commitment to reforming outdated government entanglements. If executed thoughtfully, this move could transform the GSEs from crisis-era burdens into engines of national prosperity, setting the stage for a fund that secures America’s economic future for generations.
With IPO discussions accelerating, the coming months may well define this legacy initiative and pave the way for the SWF to buy bitcoin with The Great Mortgage Corporation’s dividends.
Best Regards,
Nicholas Green, CIO
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