Singapore has launched a coordinated push to become Asia’s anchor for gold trading, with six of the world’s biggest banks backing a new clearing system for physical gold stored on the island. The announcement puts it in direct competition with Hong Kong, which is already targeting a July launch for its own gold clearing system.
Deputy Prime Minister Gan Kim Yong made the announcement on Monday, June 15, outlining a package of measures from the Singapore Exchange and the Monetary Authority of Singapore. Together, they aim to capture more of a market where Asia accounts for 70% of global gold demand, yet price-setting still happens in London and New York.
Inside Singapore’s Gold Push
The Singapore Exchange will establish an over-the-counter (OTC) gold clearing system for physical gold stored in Singapore by the end of 2026. Six banks signed on as clearing members: DBS, Deutsche Bank, ICBC Standard Bank, JPMorgan, OCBC, and UOB, with interbank trading expected to build from 2027.
The Monetary Authority of Singapore will introduce central bank gold-vaulting services by October, letting foreign central banks and sovereign entities store their reserves on the island. It is also removing a 5% cap on physical precious metal investments under tax-incentive schemes, giving eligible funds and family offices more room to allocate to the metal.
Asia’s Gold Hub Gap
Asian consumers drive roughly 70% of annual global gold demand, but the infrastructure to match that share has never existed in the region. Gan described price discovery concentrating in London and New York as a structural problem, particularly painful during Asian trading hours when liquidity thins and large trades become harder to execute.
Singapore is not trying to replace those markets, Gan said. The aim is to serve as a connecting node during Asian hours, linking regional demand to broader liquidity. The World Gold Council notes that OTC models suit large institutional trades better than exchange-based alternatives, giving participants more flexibility over when and how they trade.
The Asia Gold Hub Race
Singapore’s push comes with an active competitor. Hong Kong is targeting July for the launch of its own gold clearing system and is also relaunching gold futures, with its own set of banks and central bank relationships in place.
Gold prices have climbed sharply this year, drawing more institutional attention to the metal and raising the stakes for both cities. DBS, one of Singapore’s six clearing members, is also preparing tokenized physical gold for retail customers. Rival OCBC is already giving institutional clients the option to buy, sell, and store physical gold in Singapore.
Whether Singapore or Hong Kong captures the larger share of Asia’s gold clearing flows will depend on more than launch timing. But six major global banks committing to Singapore’s system already signals serious commercial intent.
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