OTC Gold Clearing System (by SGX): The Singapore Exchange (SGX) will launch an OTC gold clearing system for “Loco Singapore” (physical gold stored in Singapore) by the end of 2026.
Singapore is advancing plans to establish itself as a gold trading hub in Asia, with a major announcement today (June 15, 2026) building on earlier initiatives from March 2026.
Singapore is advancing plans to establish itself as a gold trading hub in Asia, with a major announcement today (June 15, 2026) building on earlier initiatives from March 2026.
Background (March 2026 Announcement)
In March 2026, the Monetary Authority of Singapore (MAS) and the Singapore Bullion Market Association (SBMA) outlined key focus areas through their Gold Market Development Working Group (formed in January 2026).
These include:
💥Developing gold-related capital market products to support price discovery and liquidity.
💥Establishing robust, internationally aligned standards for vaulting and logistics.
💥Building a clearing system for secure and efficient over-the-counter (OTC) settlement of large gold bars (400 troy oz / ~12.4 kg, London standard) and kilobars (1 kg, common in Asia).
💥MAS exploring vaulting services for foreign central banks and sovereign entities.
The working group planned to detail and implement these measures throughout 2026.
Latest Announcement (June 15, 2026)
At the 9th Asia-Pacific Precious Metals Conference, Deputy Prime Minister Gan Kim Yong (also MAS Chairman and Minister for Trade and Industry) detailed concrete next steps to strengthen Singapore’s role as a “trusted node” in the global gold ecosystem.
The goal is to connect Asia’s ~70% share of global gold demand with worldwide liquidity during Asian trading hours, complementing centers like London and New York.
Key Measures
💥OTC Gold Clearing System (by SGX): The Singapore Exchange (SGX) will launch an OTC gold clearing system for “Loco Singapore” (physical gold stored in Singapore) by the end of 2026.
It will support both large bars and kilobars with standardized settlement during Asian hours.
Interbank trading is expected to build from 2027.
It will support both large bars and kilobars with standardized settlement during Asian hours.
Interbank trading is expected to build from 2027.
This aims to reduce counterparty risk, improve transparency, efficiency, and confidence for market participants.
💥Clearing Members: Six major banks will participate as clearing members and are signing a Memorandum of Understanding (MOU) with SGX today: DBS, Deutsche Bank, ICBC Standard Bank, J.P. Morgan, OCBC, and UOB
💥MAS Central Bank Gold Vaulting Services: MAS will introduce vaulting services for foreign central banks and sovereign entities by October 2026. This complements existing commercial vault capacity (over 2,000 tonnes). MAS will also extend gold accounts to select Singapore-based bullion banks to support liquidity and active management
Singapore is positioning itself as a secure, trusted hub for physical gold trading, clearing, settlement, and storage in Asia.
This responds to growing investor and central bank interest in vaulting gold in the region amid geopolitical uncertainty.
DPM Gan emphasized: “We are not seeking to replace established centres of gold trading and liquidity. Instead, Singapore can serve as a trusted node in the global gold ecosystem – connecting regional demand with global liquidity, and supporting market activity during Asian hours.”
These steps build on prior efforts, such as the LionGlobal Singapore Physical Gold Fund (launched Nov 2025, now over S$600 million in assets).
