Temasek Rules Out Direct Crypto Investments, Targets AI to Reach 15% of Portfolio
Temasek Holdings, Singapore’s state-owned investment firm, has confirmed that it does not hold any direct investments in cryptocurrencies. The decision comes amid ongoing regulatory uncertainty and follows a US$275 million loss from the collapse of crypto exchange FTX in 2022.
The firm, which manages S$518 billion (around US$400 billion) in assets, is now shifting its focus toward artificial intelligence (AI). Temasek aims for AI-related investments to account for 15% of its total portfolio by 2031, up from approximately 6% in the first quarter of 2026.
Nagi Hamiyeh, President of Temasek Global Investments, said the company currently has no direct exposure to crypto assets. However, he did not rule out the possibility of changing its position in the future, depending on how regulations evolve and the role cryptocurrencies play in the global financial system.
The Shadow of FTX
The collapse of FTX remains one of the main reasons behind Temasek’s cautious approach to digital assets. The incident also prompted the Monetary Authority of Singapore (MAS) to strengthen oversight of cryptocurrency companies operating in the country.
Stricter regulations have increased compliance costs and extended licensing processes, making Singapore a more challenging market for crypto businesses than it was a few years ago.
Still Bullish on Blockchain
Although Temasek has ruled out direct investments in cryptocurrencies, it continues to see strong potential in blockchain technology.
According to Hamiyeh, blockchain could play a significant role in transforming the real economy. Temasek distinguishes between investing in speculative crypto tokens and supporting blockchain infrastructure that could be adopted by businesses, financial institutions, and AI-powered applications in the future.
AI Becomes a Long-Term Priority
Temasek believes the AI investment cycle is still in its early stages and could continue expanding for decades.
However, Hamiyeh cautioned that valuations across parts of the AI sector have become elevated, meaning investors should continue to focus on business fundamentals rather than market hype.
A Signal for the Crypto Industry
Temasek’s position highlights the cautious stance many large institutional investors continue to take toward cryptocurrencies, despite the market’s recovery. Several sovereign wealth funds and long-term investment firms have also avoided direct crypto exposure while acknowledging blockchain’s long-term potential.
Meanwhile, the global regulatory landscape is becoming clearer. The European Union has fully implemented the Markets in Crypto-Assets (MiCA) regulation, the United States is advancing the CLARITY Act, and Singapore continues to refine its digital payment services framework.
Even so, it remains uncertain whether these regulatory developments will eventually persuade Temasek to reconsider direct investments in cryptocurrencies.
Meanwhile, Temasek’s overall portfolio continues to grow. In its latest report, the firm recorded a net portfolio value of S$518 billion, up S$49 billion from the previous year, with AI-related investments contributing significantly to that growth.
