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Daily Brief · Crypto · AI

Temasek pivots from crypto to AI, Thailand's stablecoin dragnet, and Malaysia's AI IPO record

Temasek tells investors it holds no direct crypto exposure and is lifting its AI allocation from 6% to 15% by 2031, citing regulatory uncertainty and its $275 million FTX write-off. Thailand's central bank and securities regulator have opened a joint probe into high-volume USDT transfers structured to dodge disclosure rules. In Kuala Lumpur, AI systems-integrator SRKK AI closed its ACE Market debut up 90.6%, the most oversubscribed Bursa Malaysia listing of 2026.

July 14, 20264 min readSingapore · Thailand · Malaysia · Temasek · Stablecoins · AI · Capital Markets
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Temasek's shift in capital allocation from crypto to AI reflects a broader recalibration among Southeast Asia's sovereign investors.

Temasek draws a hard line between AI and crypto

Temasek Holdings said it holds no direct cryptocurrency investments and does not plan to add any, with president of Temasek Global Investments Nagi Hamiyeh telling reporters the fund's exposure was shaped by the collapse of FTX in 2022, which cost Temasek a $275 million write-off. Hamiyeh said the fund cannot forecast what role crypto will play in the broader economy given how unsettled the regulatory picture remains across the jurisdictions Temasek operates in.

In its place, the Singapore state investor is redirecting capital toward artificial intelligence: AI-related holdings currently sit at 6% of the portfolio, with a target of 15% by 2031. Temasek said it will keep exploring blockchain as infrastructure — separate from taking positions in crypto assets themselves — and flagged that some AI valuations have already outrun business fundamentals.

Bank of Thailand and SEC open joint dragnet on USDT transfers

The Bank of Thailand and Thailand's Securities and Exchange Commission have started jointly examining unusual activity in stablecoin transactions as part of a widening effort to curb illicit finance, according to reporting confirmed this week. The review is concentrated on USDT transfers, with authorities using data-analytics tools to flag transfers that appear structured to avoid disclosure requirements or to move funds outside conventional banking channels.

The probe sits alongside a broader crackdown that has already produced concrete enforcement action: Thai police have uncovered a crypto-laundering network in which a single suspect's digital wallet processed more than $122.5 million over a ten-month period. Authorities are treating banks as a compliance checkpoint, cross-referencing cash deposits, exchange activity, and crypto transfers to trace fraud networks.

SRKK AI's Bursa debut is 2026's most oversubscribed IPO

SRKK AI Bhd, a Malaysian IT systems integrator that builds its business around Microsoft-stack AI deployment for enterprise clients, closed its first day on Bursa Malaysia's ACE Market at 61 sen — up 90.6% from its 32 sen IPO price, after opening at 60 sen. More than 103 million shares changed hands, giving the company a closing market capitalisation of RM173 million.

The debut followed an oversubscription rate of 312.3 times, the highest received by any Bursa Malaysia IPO so far in 2026, with retail investors submitting RM1.4 billion in applications for a RM20.48 million raise. SRKK AI holds all six Microsoft Solution Partner designations under the Microsoft AI Cloud Partner Program — a first among Malaysian solution providers — and drew roughly RM11.8 million, or 11% of 2025 revenue, from AI-enabled solutions.

Eyes on the Day Ahead

Malaysia's June CPI print lands Friday, the week's key domestic data point after Bank Negara held the OPR at 2.75% on July 9; separately, watch for any formal rulemaking response from Thailand's SEC following this week's joint stablecoin probe with the central bank, which regional exchanges will be tracking closely for signs of a broader compliance mandate.

Layer 7 Ventures is a research-driven firm focused on AI and cryptocurrency in Southeast Asia. Views expressed are those of the firm and do not constitute investment advice.

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