Singapore launches gold clearing system with major banks

Singapore has launched a comprehensive initiative to become Asia’s leading hub for gold trading, introducing a new clearing system, central bank vaulting services, and regulatory changes to attract capital. Deputy Prime Minister Gan Kim Yong announced the measures on Monday, June 15, at the Asia-Pacific Precious Metals Conference.

The centerpiece is an over-the-counter gold clearing system to be established by the Singapore Exchange by the end of 2026. It will facilitate settlement for physical gold stored in Singapore, with interbank trading expected to build from 2027. Six major banks have signed on as founding clearing members: DBS, Deutsche Bank, ICBC Standard Bank, JPMorgan, OCBC, and UOB.

Concurrently, the Monetary Authority of Singapore will introduce gold-vaulting services for foreign central banks and sovereign entities by October 2026. The authority will also remove a 5% cap on physical precious metal investments under tax-incentive schemes for eligible funds and family offices, a move expected to unlock significant institutional demand.

Officials framed the push as addressing a structural gap in the global gold market. While Asia accounts for roughly 70% of global...