Deputy Prime Minister Gan Kim Yong said that the Singapore Exchange (SGX) will launch an over-the-counter clearing system for Loco Singapore, physical gold stored in the city-state, by the end of 2026.
Six banks, including DBS, Deutsche Bank, ICBC Standard Bank, J P Morgan, OCBC and UOB, will act as clearing members of the platform.
The Monetary Authority of Singapore (MAS) will also begin offering central bank gold-vaulting services from October, providing foreign central banks and sovereign entities with a secure location to store their gold reserves.
The SGX is additionally exploring a physically deliverable gold futures contract linked to Loco Singapore, while MAS will remove a 5% cap on physical investment precious metals under tax incentive schemes for eligible funds and family offices.
The measures come as investor interest in gold remains strong despite recent price volatility. Gold prices surged to a record high of about $5,600 an ounce earlier this year amid concerns over inflation, geopolitical tensions and market uncertainty, before retreating in recent months.
Singapore’s banks have already begun expanding their bullion offerings. Last week, DBS said it would launch tokenised physical gold for retail investors through its digibank app in the second half of 2026, allowing customers to buy, hold and trade digital tokens backed by physical gold stored in the bank’s vaults.
DBS said physical gold holdings among its wealth clients have more than doubled over the past three years, underscoring growing appetite for the asset.
OCBC has also said it will allow institutional and private banking clients to buy, sell and store physical gold in Singapore.
The latest initiatives stem from recommendations by a working group set up earlier this year and come as other financial centres seek a bigger share of the bullion market. Reuters reported in May that Hong Kong Exchanges and Clearing is considering relaunching gold futures as the city seeks to become an international gold trading and storage hub.
-With Reuters inputs
