Singapore challenges London and New York: Asia demands its own gold hub
Singapore launches an ambitious program to become the main hub for physical gold trading in Asia. Six of the world's largest banks have already supported the creation of a new clearing system for the precious metal, which will be stored on the island. This is a direct challenge not only to Hong Kong, but also to traditional pricing centers — London and New York.
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). The key goal is to eliminate a paradox: Asia accounts for 70% of global gold demand, but key prices are still set in Western time zones. This creates systemic inconveniences for Asian players, reducing liquidity during their trading hours.
How Singapore is Reshaping the Gold Market Map
SGX will open an over-the-counter (OTC) clearing system for physical gold stored in Singapore by the end of 2026. Participants include DBS, Deutsche Bank, ICBC Standard Bank, JPMorgan, OCBC, and UOB. The launch of interbank trading is expected from 2027. This is not just infrastructure — it is the creation of a full-fledged financial hub where liquidity will be available during Asian hours.
Starting in October, MAS will begin offering gold storage services for foreign central banks and sovereign funds. As part of tax incentives, the 5% limit on investments in physical precious metals for funds and family offices is being lifted. They will now be able to freely increase the share of gold in their portfolios, opening the door for institutional capital.
Hong Kong is Not Idle, but Singapore Has a Trump Card
Competition is intensifying: Hong Kong plans to launch its own gold clearing system in July, resuming trading in metal futures. However, Singapore is betting on deeper integration with global banks and central banks. The support of six major international banks is a serious bid for commercial success.
Notably, DBS, one of the participants in the Singapore system, is preparing to issue tokenized physical gold for retail clients, while OCBC is already actively buying, selling, and storing the metal for institutions. This shows that Singapore is thinking not only in wholesale categories but also aims to cover the entire chain — from central banks to private investors.
My professional view: Singapore is not trying to completely displace London or New York — that is impossible. But it is creating a critically important "bridge" between Asian demand and global liquidity. If the system launches on time, we will witness a fundamental shift: gold will cease to be a "Western" asset in terms of pricing, finally becoming global. For the crypto industry, this is also a signal — the regionalization of precious metals markets could accelerate the adoption of tokenized assets based on real gold.