Demand from private wealth and institutional clients has prompted DBS to increase its gold storage capacity in Singapore.
The expansion comes as the city-state prepares to introduce a domestic gold clearing system, Bloomberg reported.
Singapore Exchange plans to launch an over-the-counter clearing system for locally stored gold by the end of 2026.
DBS, Deutsche Bank, ICBC Standard Bank, JPMorgan, OCBC and UOB have agreed to participate as clearing members.
Singapore’s private facilities can currently hold at least 2,200 tonnes of gold. Le Freeport accounts for around 1,700 tonnes, while The Reserve can accommodate another 500 tonnes.
Le Freeport reported in May that its basement vaulting area was nearly full. Some banks may struggle to secure space there, according to people familiar with the matter.
OCBC has contacted storage providers about additional capacity, while Deutsche Bank is considering a similar move. The plans could change.
The Singapore lender has seen continued interest in physical gold services, particularly among private banking clients. Deutsche Bank declined to comment.
Singapore is also considering a reference price for gold traded and settled locally, according to people involved in the discussions.
Hong Kong began testing its own clearing system and introduced the HAU gold price ticker in July. It plans to increase its storage capacity to 2,000 tonnes within three years.
Featured image: Edited by Fintech News Singapore, based on image by mehmadm930 via Magnific
