Singapore's Monetary Authority (MAS) and Singapore Exchange will launch a new over-the-counter gold-clearing system by the end of 2026. The platform will facilitate trading of locally stored physical bullion, with interbank activities beginning in 2027. The initiative aims to connect Asia's growing demand for bullion with global liquidity and position Singapore as a bridge between regional markets and international trading centers. The move comes as investor interest in gold rises amid geopolitical uncertainty and central bank buying. Singapore is competing against established hubs in London, New York, and Switzerland to become Asia's leading precious metals center.
MAS Confirms Gold-Clearing Platform Launch Timeline
The Monetary Authority of Singapore confirmed that the Singapore Exchange will establish an over-the-counter gold-clearing system for locally stored physical bullion. The platform is expected to be operational by the end of 2026. Participants plan to begin interbank trading activities in 2027.
Singapore Deputy Prime Minister and MAS Chairman Gan Kim Yong said the initiative strengthens the country's role in the global bullion market. "We are not seeking to replace established centres of gold trading and liquidity," Gan said. "Instead, Singapore can serve as a trusted node in the global gold ecosystem." The project is part of Singapore's broader strategy to position itself as a key bridge between Asian demand and international bullion markets.
JPMorgan and Deutsche Bank Join Clearing System
Several leading financial institutions have agreed to participate in the new clearing system. The list includes JPMorgan, Deutsche Bank, DBS, OCBC, UOB and a joint venture involving ICBC and Standard Bank.
These institutions are expected to help provide liquidity, facilitate settlements and support the growth of Singapore's bullion market. According to officials, the goal is to create a more seamless trading environment across different time zones while improving access to physical gold liquidity during Asian market hours.
Singapore Introduces Central Bank Vaulting Services in October 2026
MAS will introduce new vaulting services for central banks beginning in October 2026. The service will allow foreign central banks to securely store bullion reserves in Singapore while maintaining access to regional market liquidity.
Gan said the initiative strengthens Singapore's position as a location where reserve assets can be "securely held, actively managed, and connected to wider market liquidity."
Singapore Removes 5% Tax Cap on Gold Investments
MAS is removing a 5% cap on tax incentives for physical gold investments held by family offices and eligible investment funds. The regulatory change is part of Singapore's broader effort to attract institutional capital to its bullion market.
MAS Positions Singapore as Regional Bullion Hub
The global bullion market has traditionally been dominated by London, New York and Switzerland. Asian demand for precious metals has grown rapidly in recent years, with Singapore and Hong Kong competing to become the region's leading precious metals hub.
The launch of the new gold-clearing system could improve price discovery, increase regional liquidity and make it easier for institutions to trade and store bullion in Asia. For investors, banks and central banks, Singapore's infrastructure development signals intensifying competition for global bullion market leadership.
FAQ
When will Singapore's gold-clearing system begin operations?
The Monetary Authority of Singapore confirmed that the over-the-counter gold-clearing system will be operational by the end of 2026, with interbank trading activities beginning in 2027.
Which banks are participating in Singapore's new gold-clearing platform?
Confirmed participants include JPMorgan, Deutsche Bank, DBS, OCBC, UOB and a joint venture involving ICBC and Standard Bank.
What vaulting services will Singapore offer to central banks?
Beginning in October 2026, MAS will provide vaulting services allowing foreign central banks to securely store bullion reserves in Singapore while maintaining access to regional market liquidity.
