Key facts
- Singapore plans to launch an over-the-counter gold clearing system by the end of 2026.
- Banks including JPMorgan Chase & Co. and Deutsche Bank AG will participate.
- The Monetary Authority of Singapore (MAS) will also introduce gold-vaulting services for central banks by October.
- The MAS will remove the 5% cap on physical investment precious metals under tax incentive schemes for funds.
- The initiative aims to boost Singapore's role as a global node for capital, investment, and physical trade flows in the precious metals market.
Singapore is set to launch an over-the-counter (OTC) gold clearing system by the end of 2026, with major international banks like JPMorgan Chase & Co. and Deutsche Bank AG participating. This initiative is part of a broader strategy by the Monetary Authority of Singapore (MAS) to establish the city-state as a significant hub in the global bullion market. Deputy Prime Minister Gan Kim Yong announced that the MAS will also introduce gold-vaulting services for central banks by October, aiming to attract foreign central banks and sovereign entities to manage their gold holdings in Singapore. Additionally, the MAS will remove the 5% cap on physical investment precious metals under tax incentive schemes for funds, allowing for more flexible portfolio diversification and increased capital deployment into physical gold within Singapore. The Singapore Exchange (SGX) will establish the clearing mechanism, with interbank trading expected to grow from 2027. Several banks, including DBS, Deutsche Bank, ICBC Standard Bank, JPMorgan, OCBC, and UOB, have signed Memoranda of Understanding with SGX to act as clearing members. This development aims to address the gap in the Asian time zone for efficient gold liquidity access, risk management, and transaction settlement, aligning market practices with global standards like the LBMA Good Delivery framework.