Singapore is moving ahead with a new gold market infrastructure project that brings together JPMorgan, Deutsche Bank, DBS, OCBC, UOB, and ICBC Standard Bank. Under a memorandum signed with Singapore Exchange at a conference on Monday, SGX will build an over-the-counter gold clearing mechanism, with completion targeted by the end of 2026.
The buildout starts this year. Inter-bank trading is expected to develop from next year as the platform expands. The clearing setup will align with London Good Delivery standards, covering large bars and kilobars used in the Chicago and Shanghai exchanges.
MAS adds vaulting services and gold access channels
The Monetary Authority of Singapore said it will introduce central bank gold vaulting services by October this year. Foreign monetary authorities will be able to manage bullion holdings with selected banks based in Singapore. DBS also plans to let customers hold tokenized gold in the second half of this year, while OCBC will offer institutional clients the ability to trade and store physical gold through the bank.
MAS is also widening tax exemptions for eligible funds and family offices investing in physical investment precious metals. The changes were announced during the Asia-Pacific Precious Metal Conference on Monday and are aimed at drawing in institutional capital and wealth management structures operating from Singapore.
Singapore and Hong Kong are building rival regional systems
Singapore’s move comes as Hong Kong advances a parallel gold clearing network. According to the industry update cited in the report, Hong Kong’s system is expected to be ready by July and has signed up five Chinese banks and six international banks. Singapore is taking a similar route, combining regional and global banks inside the same clearing framework.
Deputy Prime Minister Gan Kim Yong said Singapore serves as a trusted node linking regional demand with global liquidity, supporting trading across Asia, Europe, and the Americas. JPMorgan’s Wai Mei Hong said Singapore can serve a complementary role as investor demand for gold continues to expand globally.
The package goes beyond a single clearing rail. OTC clearing, central bank vaulting, tokenized gold, physical gold services, and tax changes are being rolled out together, pointing to a broader attempt to build a full gold liquidity hub in Singapore.