Singapore sets up OTC gold clearing, central bank vaulting in 2026
What's new: MAS will launch vaulting by October, scrap a 5% cap on physical precious metals and let six banks clear trades.
Singapore is building new gold-market infrastructure as it pushes to become a bigger trading hub in Asia. Deputy Prime Minister Gan Kim Yong said Singapore Exchange will establish an over-the-counter clearing system for Loco Singapore, or physical gold stored in the city-state, by the end of this year. Six banks — DBS, Deutsche Bank, ICBC Standard Bank, JPMorgan, OCBC and UOB — will serve as clearing members. The Monetary Authority of Singapore will start gold-vaulting services for foreign central banks and sovereign entities by October and remove a 5% cap on physical investment precious metals under tax incentive schemes for eligible funds and family offices. SGX is also exploring a physically deliverable gold futures contract.