CoinDesk
Singapore's state-owned Temasek Holdings will prioritize artificial intelligence investments over crypto, citing regulatory uncertainty and a lingering $275 million write-off from the 2022 collapse of FTX. The $400 billion wealth fund currently holds no direct crypto investments, president of Temasek Global Investments Nagi Hamiyeh told CNBC on Wednesday.
Hamiyeh said Temasek is aiming to lift AI-related holdings from 6% of its portfolio in the first quarter of 2026 to 15% by 2031, while warning that valuations in some parts of the AI industry have already run ahead of business fundamentals. "We don't have directly any, any investment in crypto," he said. "I can't forecast what happens in the future, and the role that crypto is going to play in the main economy, depending on the different regulations that might happen."
Why it matters
Temasek's stance matters less for what it sells than for what it represents: the largest Singapore state investment vehicle, with a portfolio of roughly S$518 billion, is treating crypto as too uncertain to underwrite at institutional scale even as it pours capital into AI. The combination of the FTX-era write-off, which exposed weak consumer protections in Singapore, and a subsequent crackdown by the Monetary Authority of Singapore, has pushed compliance costs and licensing timelines high enough that a sovereign-style allocator now publicly steps around the asset class.
Other Asia-based institutions reading the same signals will see this as cover to follow suit. Temasek is also continuing to explore blockchain technology for real-economy use cases, but the public posture is clear: regulated capital is being routed into AI infrastructure instead of digital assets.
Market impact
The immediate market signal is bearish for crypto exposure in regulated Asia, even as Temasek itself holds none. Stablecoin market capitalization fell to $312B in June, the largest monthly drop since TerraUSD, while tokenized equity volumes surged 145% to a record $3.86B in the same window.
Frequently asked questions
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Why is Temasek pulling back from crypto?
The Singapore state wealth fund cited regulatory uncertainty and a lingering $275 million write-off from the 2022 collapse of FTX. Temasek currently holds no direct crypto investments.
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How much is Temasek planning to invest in AI?
Temasek aims to raise AI-related holdings from 6% of its portfolio in Q1 2026 to 15% by 2031, while flagging that some AI valuations have run ahead of fundamentals.
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Will Temasek still invest in blockchain technology?
Yes. Despite freezing direct crypto exposure, Temasek says it is continuing to explore blockchain technology and its potential to transform the real economy.
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What is happening in Singapore's crypto regulation?
Following the FTX collapse and other failures, the Monetary Authority of Singapore has moved toward stricter supervision, higher compliance costs and slower licensing for crypto firms.
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How does this fit with broader crypto market trends?
Stablecoin market capitalization fell to $312B in June, the largest monthly drop since TerraUSD, even as tokenized equity volumes surged 145% to a record $3.86B.
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