Six Banks Join Singapore Gold Clearing Initiative

Six banks have joined Singapore’s OTC gold clearing initiative by signing Memoranda of Understanding with Singapore Exchange (SGX) to partake in the project, which was first announced in March.

Under the MoU, the six, DBS, Deutsche Bank, ICBC Standard Bank, JP Morgan, OCBC and UOB, will become clearing members in the project, which is led by the Monetary Authority of Singapore (MAS) and the Singapore Bullion Market Association (SBMA), and expected to go live in 2027. In a speech on 15 June, Gan Kim Yong, chairman of the Monetary Authority of Singapore, noted that “the centre of gravity for gold demand is shifting further towards Asia” however, “Asia’s gold market infrastructure has not fully kept pace with this shift in demand.”

While stressing that Singapore is not seeking to replace established centres of gold trading and liquidity, Gan observed that the centre can serve as “a trusted node” in the gold ecosystem – connecting regional demand with global liquidity – in both large bars and kilobars – and supporting market activity during Asian hours.
“Our value proposition rests on two key strengths – connectivity and trust,” he said. “Our financial centre is deeply connected to global markets, and anchored by strong institutions operating within a robust and progressive regulatory framework. We are well placed to complement the existing global network, by making it easier for participants to trade, clear, settle, store and manage gold in this region.”

The gold clearing system – Loco Singapore – will be established by SGX before the end of 2026, with interbank trading expected to commence in 2027. The exchange is also exploring a deliverable gold futures contract to enhance price discovery and transparency. Alongside this development, the MAS will introduce central bank gold vaulting services by October, Gan explained, which will complement existing commercial capacity.

“Our gold market initiatives are part of a broader effort to strengthen Singapore’s role as a trusted global node for capital, investment and physical trade flows,” Gan explained. “Asia’s demand for financial services is growing, and so is the need for reliable market infrastructure in this time zone. 
“At the same time, global fragmentation and uncertainty are raising the premium on safe, trusted and credible venues for intermediation,” he continued. “Our initiatives will broaden Singapore’s marketplace, so that institutions and companies can manage investments for the long term, preserve value, and transact with confidence.”
Prakash Shah, global head of metals trading at Deutsche Bank, says, “This initiative is a

critical step in strengthening Singapore’s market infrastructure and reinforcing its position

as a global gold trading hub. By improving clearing and settlement efficiency, it will

enhance market confidence and encourage greater flows into Singapore.”