Temasek Scratches Crypto Investment Plans Amid Regulatory Uncertainty

Singapore's Temasek Holdings, a sovereign wealth fund, has announced that it will not invest directly in cryptocurrencies following the collapse of FTX. According to President of Global Investments Nagi Hamiyeh, regulatory uncertainty is the primary reason for this stance.

Hamiyeh cited the $275 million writedown by FTX last year as an example of the risks associated with crypto investments. The loss drew sharp criticism from Singapore's Deputy Prime Minister Lawrence Wong at the time.

Temasek is instead focusing on blockchain infrastructure and its potential applications in the real economy. Hamiyeh emphasized the importance of adoption over frontier AI models, stating that 'it's all about the applications' and the companies embracing AI.

The fund aims to increase its exposure to AI from 6% to 15% of its portfolio by 2031. Temasek has also deployed approximately $14 billion in Europe over the past two years, with a focus on luxury brands, consumer names, energy transition plays, and family-owned industrials.