Temasek Abandons Crypto, Doubles Down on AI and Blockchain Infrastructure

Singapore's state investor Temasek has ruled out direct cryptocurrency investments, despite its valuation of around $400 billion. The fund is shifting focus to artificial intelligence and blockchain infrastructure, with a target exposure of 15% in AI by 2031, up from the current 6%. Nagi Hamiyeh, president of global investments at Temasek, said that regulatory uncertainty remains a major concern for crypto's role in mainstream finance. He emphasized that direct token exposure is not aligned with the fund's mandate.

Temasek had written down $275 million in its FTX stake after the exchange collapsed in 2022. The exposure represented 0.09% of its net portfolio value at the time, but the firm has since avoided direct crypto investments. Hamiyeh noted that uncertainty around crypto's role in the economy carries regulatory, reputational, and liquidity risks for a sovereign investor like Temasek.

The fund remains interested in blockchain infrastructure, viewing it as more useful when linked to real-world systems such as settlement, supply chains, identity, and enterprise data flows. This approach allows Temasek to follow digital asset innovation without absorbing daily token volatility.