Temasek Shuns Crypto, Targets 15% AI Portfolio by 2031

Temasek Holdings will not add new cryptocurrency exposure. The $400 billion Singapore state investor will instead deepen its bet on artificial intelligence. Nagi Hamiyeh, president of Temasek Global Investments, told CNBC that regulatory uncertainty is driving the shift. A lingering $275 million write-off from the 2022 FTX collapse also weighs on the decision. Why Temasek Is Stepping Back From Crypto Temasek confirmed it holds no direct crypto positions today. The fund still remembers the FTX custody failures that followed Sam Bankman-Frieds exchange collapse. Consequently, that collapse hardened Singapores regulatory posture across the sector. Regulators tightened licensing rules soon after, and compliance costs climbed as approvals slowed. Several exchanges and fund managers reportedly rethought their Singapore operations because of it. Hamiyeh said Temasek cannot forecast what role cryptocurrencies will eventually play in the broader economy. I cant 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. Portfolio Evolution. Source: Temasek Review AI Allocation Set to Triple by 2031 Temaseks official report put its net portfolio value at S$518 billion ($400 billion) as of March. AI made up about 6% of holdings at that point. The firm now wants to lift that share to 15% by 2031. Hamiyeh said the AI investment cycle has just begun and will run for decades. However, he cautioned that some AI valuations already outpace their underlying fundamentals. That concern echoes the broader AI capital rotation seen this year. Meanwhile, other institutions retreating from digital assets have made similar pivots toward AI in recent months. Blockchain Applications Still On Temaseks Radar Temasek is not abandoning blockchain outright, Hamiyeh said. The firm continues exploring how the technology could transform the real economy. AI adoption remains the near-term priority for its investment teams. Not every situation needs frontier models. Nagi Hamiyeh, president of Temasek Global Investments, added that success depends on companies that embrace AI and build a lasting edge. Singapores regulatory stance toward digital currencies keeps hardening as this shift unfolds. It follows years of scrutiny tied to the FTX collapse aftermath, including ongoing pardon debates around Bankman-Fried. In contrast to its earlier crypto bet, Temaseks AI push carries fewer known regulatory landmines for now. That advantage likely depends on how quickly valuations across the wider sector cool.