Temasek, Singapore’s state-owned investment firm managing approximately $400 billion in assets, has confirmed it will not resume direct cryptocurrency investments in the near term. Instead, the fund is doubling down on artificial intelligence (AI) and blockchain infrastructure, while maintaining a cautious stance on digital assets due to persistent regulatory uncertainty.
Nagi Hamiyeh, Temasek’s President of Global Investments, told CNBC that the firm still lacks confidence in crypto’s long-term role within the broader financial system. This cautious approach follows the complete write-down of Temasek’s $275 million investment in FTX in 2022, which represented about 0.09% of its total portfolio.
FTX Loss Continues to Shape Investment Strategy
The collapse of FTX remains a defining event for Temasek’s digital asset strategy. The fund’s exposure included $210 million in FTX International and $65 million in FTX US. Although Temasek had clarified that the investment did not represent a direct bet on cryptocurrencies, the loss prompted a thorough review of its approach.
Hamiyeh explained that Temasek currently holds no direct crypto assets and cannot yet determine how cryptocurrencies will integrate into the wider economy. Regulatory uncertainty, liquidity concerns, and reputational risks continue to guide investment decisions. The fund has indicated that direct crypto exposure could return only after clearer regulatory frameworks emerge across major markets. Until then, digital tokens remain outside its investment mandate.
Blockchain Remains Part of the Long-term Strategy
While Temasek avoids direct cryptocurrency holdings, it continues to monitor blockchain technology closely. The firm sees greater value in infrastructure that supports practical business applications rather than speculative digital assets. Areas of interest include blockchain solutions for settlement systems, supply chain management, digital identity, and enterprise data operations.
This approach allows Temasek to track technological progress without exposing itself to daily market volatility. Broader institutional interest has also shifted toward tokenization and blockchain-based payment systems. Banks and asset managers are testing blockchain platforms to improve settlement speed and reduce operational costs. Temasek views digital finance infrastructure, compliance technology, and related systems as broader investment opportunities than direct token holdings.
AI Receives Greater Capital Allocation
Artificial intelligence has become a top priority for Temasek. The firm plans to increase its AI exposure from 6% to 15% of its portfolio by 2031. Hamiyeh noted that the greater opportunity may come from companies that successfully apply AI across their businesses rather than those developing the most advanced models. However, the fund remains selective as some AI valuations have risen faster than underlying fundamentals.
Temasek keeps about 25% of its portfolio in liquid assets, providing flexibility to respond to market changes and pursue new opportunities. Beyond AI, Europe has attracted increasing investment. The firm invested approximately €12 billion across the region over the past two years, targeting luxury goods, consumer brands, energy transition projects, and family-owned industrial companies.
On defense investments, Temasek takes a selective approach, focusing on dual-use technologies and reviewing governance links case by case. Its direct exposure remains limited, primarily through ST Engineering.
As of the latest data from CoinGecko, Bitcoin traded near $62,824 and Ethereum around $1,750, keeping institutional activity in focus.
What’s Next?
Temasek continues to avoid direct crypto investments as regulatory uncertainty persists following its FTX loss. Instead, the fund is increasing investment in artificial intelligence and blockchain infrastructure while maintaining liquidity and selectively pursuing opportunities across Europe and other long-term growth sectors.
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