Singapore is redrawing the map of gold trading: the Asian hub challenges London and New York.
Singapore officially launches a large-scale program to become Asia's leading gold trading hub. On June 15, Deputy Prime Minister Gan Kim Yong presented a package of initiatives from the Singapore Exchange (SGX) and the Monetary Authority of Singapore (MAS). A key element is the creation of an over-the-counter (OTC) clearing system for physical gold stored on the island. The launch is scheduled for the end of 2026, with interbank trading starting in 2027. Six global giants are already participating in the project: DBS, Deutsche Bank, ICBC Standard Bank, JPMorgan, OCBC, and UOB.
Singapore's ambitions are well-founded: Asia accounts for about 70% of global gold demand. However, the paradox is that key prices are still set in London and New York. This creates significant inconvenience for Asian participants — liquidity drops during local trading hours, making large transactions more difficult. Singapore aims to solve this problem by becoming a bridge between Asian demand and global liquidity.
An important step is that MAS will begin offering gold storage services for foreign central banks and sovereign funds starting in October. Additionally, under tax incentives, the 5% limit on investments in physical precious metals for funds and family offices will be lifted. This paves the way for a significant increase in the share of gold in institutional portfolios.
Race with Hong Kong: Who will become the main hub?
Singapore enters direct competition with Hong Kong, which plans to launch its own gold clearing system as early as July 2026. Hong Kong has also secured support from several banks and established connections with central banks. The outcome of this race will depend not only on the speed of launch but also on the volume of liquidity attracted. For now, Singapore is making a serious bid: the support of six major international banks provides a strong commercial foundation.
Against this backdrop, DBS is preparing to issue tokenized physical gold for retail clients, while OCBC is already actively buying, selling, and storing precious metals for institutions. The rise in gold prices over the past year has only fueled investor interest and intensified the rivalry between the two hubs.
My view: Singapore is betting on infrastructure and regulatory clarity, which could give it an edge over Hong Kong in the long term. However, success will depend on whether the new system can deliver real liquidity during Asian hours. If it can, we will witness a fundamental shift in global gold trading.