Key facts
- Singapore plans to launch an over-the-counter gold clearing system by the end of 2026.
- JPMorgan Chase & Co. and Deutsche Bank AG are among the participating banks.
- The Monetary Authority of Singapore will introduce gold-vaulting services for central banks by October.
- A 5% cap on physical investment precious metals under tax incentive schemes for funds will be removed.
- The Singapore Exchange will establish the clearing mechanism.
Singapore is launching a suite of initiatives to bolster its position as a leading hub for precious metal trading. By the end of 2026, the city-state will introduce an over-the-counter gold clearing system, with major international banks such as JPMorgan Chase & Co. and Deutsche Bank AG set to participate. This move is part of a broader strategy by the Monetary Authority of Singapore (MAS) to enhance its role in the global bullion market.
Deputy Prime Minister Gan Kim Yong announced that the MAS will also roll out gold-vaulting services for central banks by October, aiming to attract foreign central banks and sovereign entities. Furthermore, the MAS will remove the existing 5% cap on physical investment precious metals within tax incentive schemes for funds, allowing for greater flexibility in portfolio diversification and capital allocation to physical gold.
The Singapore Exchange (SGX) will be responsible for establishing the clearing mechanism, with interbank trading anticipated 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 serve as clearing members. This development is intended to address the need for efficient gold liquidity access, risk management, and transaction settlement during Asian trading hours, aligning local market practices with global standards like the LBMA Good Delivery framework.