Introduction
Singapore has announced a series of measures aimed at expanding its role in the global precious metals market, including the launch of an over-the-counter (OTC) gold clearing system and new gold-vaulting services for foreign central banks and sovereign entities.
The announcement was made by Deputy Prime Minister Gan Kim Yong at the Asia-Pacific Precious Metals Conference on June 15, 2026. The initiatives are part of Singapore’s broader strategy to strengthen its gold trading, storage, and settlement infrastructure.
Singapore’s New Gold Clearing System
A key element of the plan is the establishment of an OTC gold clearing system for physical gold stored in Singapore, commonly known as “Loco Singapore” gold. The system will be operated through Singapore Exchange (SGX) and is expected to be operational by the end of 2026.
The clearing platform will provide a centralized mechanism for settling physical gold transactions, helping market participants reduce counterparty and settlement risks while supporting a more efficient bullion market.
Six financial institutions will serve as founding clearing members:
- DBS Bank
- Deutsche Bank
- ICBC Standard Bank
- JPMorgan Chase
- OCBC Bank
- United Overseas Bank
Central Bank Gold Vaulting Services
The Monetary Authority of Singapore (MAS) also plans to launch gold-vaulting services for foreign central banks and sovereign entities by October 2026.
The service will allow reserve managers to store physical gold within Singapore’s financial infrastructure while maintaining access to regional market liquidity. Authorities said the initiative is intended to support the secure custody and management of reserve assets in Asia.
Additional Precious Metals Market Measures
Singapore is also exploring the introduction of a physically deliverable gold futures contract through SGX. Unlike cash-settled contracts, such a product would allow market participants to take delivery of physical bullion.
In addition, MAS will remove an existing 5% cap on physical precious metal investments under certain tax incentive schemes available to qualifying investment funds and family offices, providing greater flexibility for investors seeking exposure to physical gold.
These measures build on plans announced earlier this year by MAS and the Singapore Bullion Market Association to strengthen Singapore’s position as a major precious metals trading and storage centre.
Why It Matters
The new gold clearing system and vaulting services represent a significant expansion of Singapore’s bullion market infrastructure.
By combining clearing, settlement, custody, vaulting, and potential futures trading capabilities, Singapore is creating a more integrated ecosystem for physical gold transactions. The measures are expected to improve market efficiency, support institutional participation, and enhance Singapore’s attractiveness as a location for storing and managing gold reserves.
The introduction of central bank vaulting services is particularly significant, as it could attract sovereign reserve assets and reinforce Singapore’s role in the growing Asian precious metals market.
Conclusion
Singapore’s latest gold market initiatives mark another step in the country’s effort to strengthen its position in the global bullion industry. With new clearing infrastructure, central bank custody services, and investment-related regulatory changes, Singapore is expanding the services available to financial institutions, investors, and reserve managers across Asia.
