Singapore’s Gold Market Expansion: New Clearing & MAS Vaulting
By Varun Mittal
Singapore launches OTC gold clearing and MAS vaulting services by 2026, aiming to boost market liquidity and strengthen its position in Asia’s gold trade.
Singapore is set to significantly boost its role in the global gold market, introducing an over-the-counter (OTC) gold clearing system and central bank vaulting services.
Deputy Prime Minister Gan Kim Yong announced these key initiatives at the Asia-Pacific Precious Metals Conference on June 15, 2026.
Singapore’s Gold Market Expansion
- The Singapore Exchange (SGX) will establish an OTC clearing system for Loco Singapore by the end of 2026.
- Interbank trading is projected to commence in 2027, facilitating efficient clearing of large gold bars during Asian trading hours.
- Major banks involved include DBS, Deutsche Bank, ICBC Standard Bank, J.P. Morgan, OCBC, and UOB.
The Monetary Authority of Singapore (MAS) will also launch gold vaulting services for foreign central banks and sovereign entities from October 2026.
MAS plans to provide gold accounts to selected Singapore-based bullion banks, aiming to enhance liquidity in the market.
Key Initiatives & Future Outlook
Further strengthening the ecosystem, SGX is exploring a physically deliverable gold futures contract.
Banks are simultaneously investigating the potential of tokenized gold, signaling a move towards digital innovation in the sector.
MAS will remove the 5% cap on physical investment precious metals under tax incentive schemes, offering greater flexibility for eligible funds and family offices.
These comprehensive measures are designed to solidify Singapore’s position in gold trading, settlement, and storage, complementing established hubs like London and New York.
The push is particularly strategic given that Asia accounts for approximately 70% of global consumer gold demand.