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Temasek has ruled out direct cryptocurrency investments for now as Singapore's state investor continues expanding its exposure to artificial intelligence and blockchain infrastructure. The fund, which manages about $400 billion in assets, has not restored direct digital asset exposure since writing down its $275 million FTX investment in 2022.
Meanwhile, Temasek President of Global Investments Nagi Hamiyeh said regulatory uncertainty continues to limit confidence in crypto's long-term role within the broader financial system. At the same time, CoinGecko data showed Bitcoin trading near $62,824 and Ethereum around $1,750, keeping institutional activity in focus.
Temasek's current approach follows the collapse of FTX, which resulted in a complete write-down of its $275 million investment. That exposure included $210 million in FTX International and another $65 million in FTX US.
At the time, Temasek said the investment represented only 0.09% of its overall portfolio value. The firm also clarified that the position did not represent a direct investment in cryptocurrencies.
Later, Hamiyeh told CNBC that Temasek no longer holds direct crypto assets. He explained that the firm still cannot determine how cryptocurrencies will fit into the wider economy. As a result, regulatory uncertainty, liquidity concerns, and reputational risks continue to influence investment decisions.
Furthermore, Temasek indicated that direct crypto exposure could return only after regulatory frameworks become clearer across major markets. Until then, digital tokens remain outside the fund's current investment mandate.
Although Temasek avoids direct cryptocurrency investments, it continues monitoring blockchain technology. The firm sees greater value in infrastructure that supports practical business applications rather than speculative digital assets.
For example, it continues watching blockchain solutions for settlement systems, supply chain management, digital identity, and enterprise data operations. This approach allows the fund to follow technological progress while avoiding daily market volatility.
Likewise, broader institutional interest has shifted toward tokenization and blockchain-based payment systems instead of direct cryptocurrency ownership. Banks and asset managers continue testing blockchain platforms to improve settlement speed and reduce operational costs.
Consequently, Temasek views digital finance infrastructure, compliance technology, software, and related systems as broader investment opportunities than direct token holdings.
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Meanwhile, artificial intelligence has become a larger priority within Temasek's long-term investment strategy. The firm plans to increase AI exposure from 6% of its portfolio to 15% by 2031.
Hamiyeh said the greater opportunity may come from companies that successfully apply AI across their businesses rather than those developing the most advanced models. At the same time, Temasek continues selecting investments carefully as some AI valuations have risen faster than underlying business fundamentals.
In addition, the fund keeps about 25% of its portfolio in liquid assets. That flexibility allows Temasek to respond to market changes and pursue new opportunities as conditions evolve.
Besides AI, Europe has attracted increasing investment from the firm. Hamiyeh said Temasek invested about €12 billion across the region during the past two years, targeting luxury goods, consumer brands, energy transition projects, and family-owned industrial companies.
Finally, Temasek continues to take a selective approach to defense investments. The firm focuses on dual-use technologies, reviews governance links individually, and maintains limited direct exposure through ST Engineering.
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.
