OCBC announced it expanded its wealth offering to include allocated physical gold trading and custody, saying institutional clients of OCBC and high-net-worth and ultra-high-net-worth clients of Bank of Singapore could buy, sell and custodise physical gold from 10 June 2026, with holdings kept in a Singapore-based vault.
SERVICE SCOPE AND STRUCTURE
The new service covers large gold bars of about 400 troy ounces, and provides clients with the option to hold allocated bars under custody in Singapore, according to the announcement reported by Fintech News Singapore. The product was positioned for institutional clients of OCBC as well as private banking clients of Bank of Singapore, who were identified as the initial target segments.
OCBC characterised the offering as allocated physical gold, which means clients obtain ownership of specific bars that are segregated and held on their behalf in a vault. The bank said the vault is located in Singapore, signalling that custody and physical safekeeping were central features of the proposition. The announcement did not disclose pricing, fee structures, or the precise custodial arrangements beyond the location of the vault.
The service launch followed industry moves by banks and custodians to expand precious metals capabilities for wealth and institutional clients in Singapore, a region that has sought to position itself as a bullion custody hub. The product will allow eligible clients to transact in physical gold bars via OCBC and Bank of Singapore channels, as set out in the announcement, with settlement and custody tied to the allocated bar holdings.
MARKET CONTEXT AND IMPLICATIONS
The entry of a major regional bank into allocated physical gold custody and trading represented an extension of traditional wealth services to include tangible assets, combining custody infrastructure with trading access. For private banks, offering physical precious metals custody can support client demand for portfolio diversification and tangible asset exposure, while also creating fee income streams linked to custody and transaction services.
Singapore had been increasing its prominence as a regional centre for bullion storage and trading, driven by clear regulatory frameworks for custody and by established logistics for secure handling of precious metals. By holding allocated bars domestically, OCBC and Bank of Singapore positioned the product to appeal to clients seeking physical, location-specific custody within Singapore jurisdiction.
The announcement did not specify whether the offering would include integrated digital reporting, online trade execution, or linkages to other wealth management services. It also did not provide details on insurance arrangements for the stored bullion or whether clients could opt for delivery of physical bars to locations outside Singapore. Those operational details will be material for institutional and private banking clients assessing the service against alternative custody and trading options.
For OCBC, the move aligned with a broader trend among banks to broaden the asset classes available to wealth clients. The capability to hold allocated gold in a bank-controlled custody arrangement could appeal to clients concerned with counterparty exposure to nonbank custodians or with the logistics of cross-border physical storage. Institutional investors often seek allocated holdings to ensure legal segregation of assets, and large bars of the size mentioned in the announcement tend to be used in institutional and high-net-worth contexts rather than retail investment products.
Regulators and market participants will monitor uptake and operational resilience as the service begins, given the logistical and custody complexities associated with large precious metals holdings. For competitors, the addition of allocated physical gold by a regional bank is likely to intensify competition in custody services and could influence pricing and service models across the private banking and institutional custody markets.
Sources: Fintech News Singapore