Singapore will introduce an over-the-counter gold clearing system and central bank vaulting services as it strengthens its role in Asia’s gold market.
Deputy Prime Minister Gan Kim Yong announced the measures at the Asia-Pacific Precious Metals Conference on 15 June 2026.
Singapore Exchange will establish the clearing system for Loco Singapore by the end of 2026, with interbank trading expected to build from 2027.
The system will support large gold bars and kilobars, helping market participants clear and settle transactions more efficiently during Asian trading hours.
DBS, Deutsche Bank, ICBC Standard Bank, J.P. Morgan, OCBC and UOB will sign an agreement with SGX to participate as clearing members and support trading and price discovery.
MAS to Offer Gold Vaulting Services
The Monetary Authority of Singapore will begin offering gold vaulting services to foreign central banks and sovereign entities by October 2026.
The service will complement more than 2,000 tonnes of commercial storage capacity already available in Singapore.
MAS will also extend gold accounts to selected Singapore-based bullion banks, enabling them to provide liquidity and related services to foreign central banks and sovereign entities.
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.
The change will give eligible funds and family offices more flexibility to invest in physical gold, with further details expected by September 2026.
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 these established centres by supporting gold trading, settlement and storage during Asian hours.
Featured image: Edited by Fintech News Singapore, based on image by ttonaorh via Magnific
