Asia takes the lead: Singapore launches gold clearing with support from six giants
Singapore officially enters the race for the status of Asia's premier gold hub. The city-state has announced a large-scale program to create its own clearing system for physical gold, directly challenging not only Hong Kong but also traditional pricing centers like London and New York. The initiative has already been backed by six of the world's largest banks, including DBS, JPMorgan, and Deutsche Bank.
Deputy Prime Minister Gan Kim Yong presented a package of measures developed by the Singapore Exchange (SGX) and the Monetary Authority of Singapore (MAS). The key element is the launch of an over-the-counter (OTC) clearing system for gold stored directly in Singapore. The system is expected to be operational by the end of 2026, with full-fledged interbank trading starting in 2027.
The logic behind this move is clear: Asia accounts for about 70% of global gold demand, yet key price benchmarks are still set on Western platforms. This creates a systemic problem—liquidity drops during Asian trading hours, making large transactions difficult. Singapore aims to become the link that connects vast regional demand with global liquidity.
Tax incentives and infrastructure
In addition to clearing, authorities are introducing powerful incentives to attract capital. Starting in October, MAS will begin offering gold storage services for foreign central banks and sovereign wealth funds. At the same time, the 5% limit on investments in physical precious metals for funds and family offices will be lifted. This means institutional investors can now significantly increase their gold allocation in portfolios without previous bureaucratic barriers.
Hong Kong, Singapore's direct competitor in the region, is also not standing still. It plans to launch its own gold clearing system as early as July this year and resume trading in metal futures. However, the Singapore project has a significant advantage—the support of six systemically important international banks, which is a strong commercial statement.
Analyst comment: The rise in gold prices this year has only intensified competition among Asian hubs. However, in my view, Singapore is making a more fundamental bet—not just on trading, but on creating a full-fledged ecosystem of storage, clearing, and tax incentives. If the project is implemented on time, it could forever change the map of the global precious metals market, shifting the center of gravity to the East. DBS's tokenization of physical gold is just the tip of the iceberg of upcoming changes.