Singapore announced an over-the-counter gold clearing system and new central bank vaulting services, signalling a concerted push to expand the city-state's role in Asia's precious metals market. Deputy Prime Minister Gan Kim Yong revealed the measures at the Asia-Pacific Precious Metals Conference on 15 June 2026.
RATIONALE AND MARKET CONTEXT
The announcement combined market infrastructure development with a state-backed custody option. The Singapore Exchange, or SGX, will establish the clearing system for Loco Singapore by end-2026, with DBS, Deutsche Bank, ICBC Standard Bank, J.P. Morgan, OCBC and UOB to sign agreements with SGX to participate as clearing members, while the Monetary Authority of Singapore will offer gold vaulting services to foreign central banks and sovereign entities by October 2026. Authorities framed the package as a way to strengthen Singapore's attractiveness as a trading and storage centre for gold in Asia.
The clearing system will support large gold bars and kilobars, helping participants clear and settle transactions during Asian trading hours, with interbank trading expected to build from 2027. MAS said its vaulting service would complement more than 2,000 tonnes of commercial storage capacity already in Singapore, and it will extend gold accounts to selected Singapore-based bullion banks so they can provide liquidity and related services to foreign central banks and sovereign entities.
Asia accounts for roughly 70% of annual consumer gold demand, but much of the market's trading, liquidity and price discovery remains concentrated in London and New York. Singapore aims to complement those centres by supporting gold trading, settlement and storage during Asian hours.
OTHER MEASURES
SGX is separately exploring a physically deliverable gold futures contract, while banks are studying the use of tokenised gold.
MAS will also remove the 5% cap on physical investment precious metals under tax incentive schemes for funds, giving eligible funds and family offices more flexibility to invest in physical gold, with further details expected by September 2026.
Sources: Fintech News Singapore