A blockchain-enabled U.S. sovereign wealth fund: funding constraints, regulatory barriers, and portfolio implications

The creation of a U.S. sovereign wealth fund (SWF) has long been hindered by fiscal fragmentation, political resistance, and regulatory ambiguity. At the same time, blockchain technology is redefining institutional transparency, asset tokenization, and capital allocation in global finance. This study develops a blockchain-enabled SWF for managing public capital amid financial and regulatory flux. Using U.S. sovereign data and Ethereum-based disclosure scenarios, it tests whether blockchain integration enhances transparency, lowers funding costs, and improves portfolio efficiency. Extending to decentralized finance (DeFi), this study shows how smart-contract execution and distributed governance institutionalize rule-based accountability. Empirical tests across dynamic and distributional models confirm that on-chain transparency reduces borrowing costs and volatility, consistent with DeFi’s efficiency mechanism. Findings indicate that a semi-decentralized SWF combining public oversight with algorithmic transparency can reinforce fiscal credibility while maintaining regulatory control, offering a pragmatic model for programmable transparency and decentralized accountability.