The first state entity joins the Libra Association

Temasek, one of the two investment vehicles owned by the Singapore government, is among the latest companies to join the Libra Association, the Facebook consortium created to create a global digital currency.

The addition may help explain why the Singapore dollar has figured prominently in Libra’s plans from the earliest days. In the initial vision of a new currency backed by a basket of different sovereign currencies, the “song” was included along with the US dollar, the euro and the British pound. And when Libra spun last month to focus on stablecoins pegged to existing fiat currencies, he cited the same four currencies as examples.

“Our participation in the Libra Association as a member will allow us to contribute to a regulated global network for profitable retail payments,” Chia Song Hwee, deputy chief executive of Temasek, said through a spokesperson. “We are excited about many developments in space, we hope to further explore the potential of technology.”

Libra also announced Thursday that two cryptocurrency-focused investment firms in San Francisco had joined the association: Paradigm, co-founded by Coinbase veteran Fred Ehrsam, and Slow Ventures. (Coinbase has been a member of Libra from the beginning). The three additions bring the total number of organizations on Libra’s governing council to 27.

Temasek manages $ 216 billion in assets for the Singapore government and has previously shown a penchant for blockchain companies.

“Blockchain technology can play a transformative role in payment networks by improving cost efficiency, creating new business opportunities and accelerating financial inclusion,” said Chia. “As part of our journey to better understand its impact on different fronts, we are collaborating with government agencies and companies to explore and advance its use.”

The additions also increase the influence of financiers on the Libra governing board. With eight members, they are now the largest group by industry and together they wield almost 30% of members’ control over the project.

The three newcomers join investment firms Andressen Horowitz, Breakthrough Initiatives, Ribbit Capital, Thrive Capital and Union Square Ventures, all founding members of Libra. By comparison, the association’s nonprofit contingent was five after Heifer International’s incorporation last month.

Ehrsam said Libra’s power to take the crypto mainstream appealed to his venture capital firm.

“Closing the gap with a majority user base is the next step in the evolution of space,” he said. “Any network that has the potential to socially crypto normalize and offer distribution on this scale is valuable.”

Slow Ventures director Jill Carlson did not immediately respond to a request for comment.

In a press release, Libra’s vice president, Dante Disparte, said the three additions “show our commitment to building a diverse group of organizations that contribute to governance, the technology roadmap and readiness for the launch of the Pound payment. “

Libra did not respond to questions about the weight of investment firms on its advice.

The consortium initially hoped to incorporate 100 members by the first half of 2020, its original release date. Those plans were derailed by regulators whose criticism triggered a hemorrhage from the founding members and delayed the launch.

In response, Libra narrowed his vision and slowly began to replenish his ranks. Last week, added a CEO with experience in institutional banking and government finance.

UPDATE (May 14, 00:45 UTC): An earlier version of this article referred to Temasek as a sovereign wealth fund (SWF), as it is frequently described in the financial media. However, a Temasek spokesperson said it operates independently and owns its assets, and therefore does not meet the definition. An editing error was to blame. The article was also updated to add a quote from a Temasek executive.