Singapore's largest sovereign wealth fund, Temasek Holdings, which manages assets worth approximately $400 billion, has officially announced a shift in its strategic priorities. Instead of actively expanding its positions in digital assets, the fund is now focusing on artificial intelligence technologies. This decision was announced by the organization's president, Nagi Hamiye.
The reason for this pivot is not only regulatory uncertainty but also the painful experience of the FTX exchange collapse. As a reminder, Temasek lost $275 million in that incident, which served as a serious warning about the risks associated with centralized crypto platforms. In an environment where the legal status of many digital assets remains unclear, the fund is essentially making a pragmatic choice in favor of more predictable and scalable technologies.
According to the new plan, the share of AI assets in the fund's portfolio is expected to grow from the current 6% to 15% by 2031. This indicates a long-term belief in the potential of artificial intelligence as a growth driver. However, it is worth noting that Temasek is not completely abandoning blockchain—the fund will continue to explore its applications in the real economy, particularly in areas where the technology can deliver tangible benefits, such as logistics or supply chain management.
Analytical commentary: The reorientation of an institutional giant like Temasek is a significant signal for the entire market. Investors at the level of sovereign funds cannot afford the luxury of waiting for regulators to sort out cryptocurrencies. They are choosing mature and understandable technologies. For the crypto industry, this means that the era of "easy money" from major institutional players has likely come to an end. Projects will now have to prove their real-world value, rather than just their speculative appeal.