Temasek ditches crypto after FTX loss, focuses on AI

Temasek excludes direct crypto investments after a $275M FTX loss, citing regulatory uncertainty. The fund shifts focus to AI, targeting 15% portfolio exposure by 2031.

Singapore’s Temasek Holdings has reaffirmed its decision to exclude direct cryptocurrency investments from its portfolio, maintaining this stance four years after a $275 million loss from the collapse of FTX in 2022. The company cites ongoing regulatory uncertainty and the significant financial and reputational impact of the FTX debacle as reasons for its cautious approach. Instead, Temasek is shifting its focus toward artificial intelligence, aiming to increase AI-related holdings from 6% to 15% of its portfolio by 2031. While the fund currently holds no direct crypto investments, it continues to explore blockchain technology for potential opportunities. Temasek’s strategic pivot highlights a broader trend of prioritizing sectors with clearer regulatory frameworks and perceived long-term value. The fund also warns that some AI valuations may have outpaced business fundamentals. With a portfolio valued at $400–$521 billion, Temasek’s asset allocation decisions are closely watched by the industry.