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Singapore has strong credibility among financial institutions and central banks, and is in a strong position to serve this need, he added.<\/p>\n
A DBS white paper published on Tuesday said one in four central bank respondents were actively evaluating Asian hubs as potential storage locations for official gold reserves.<\/p>\n
About half of the asset managers and banks surveyed said state-backed gold infrastructure had increased their institutions’ interest in Asian hubs, added DBS.<\/p>\n
The white paper noted that global gold demand surpassed 5,000 tonnes in 2025, reaching a record US$555 billion in value, according to the World Gold Council. Asia accounted for more than half of physical bar and coin investment, and jewellery demand.<\/p>\n
“Consequently, stronger regional infrastructure could deepen liquidity during Asian trading hours, facilitate local clearing and settlement, and support greater trading in gold bar formats,” said DBS.<\/p>\n
MAS said the gold will be stored in Singapore’s national currency vault, which can store up to 500 tonnes, with room to expand as demand grows.<\/p>\n
The Singapore Exchange and six banks are also working together to complete preparations for the Over-the-Counter gold clearing system by the end of this year.<\/p>\n
Live trading and market operations are expected to start in the first quarter of next year.<\/p>\n
Mr Gan said developing Singapore’s gold market is a natural extension to the city-state’s role as a trusted financial centre.<\/p>\n
Secure storage will be connected with trading and settlement, so that gold can be held, managed and traded in Singapore.<\/p>\n
The move will anchor new high-value activities across trading, risk management, custody and professional services, said Mr Gan.<\/p>\n
“It will create good jobs and capabilities while adding depth and resilience to our financial sector, strengthening Singapore’s role as a trusted connector between Asia and global gold markets,” he said.<\/p>\n<\/div>\n
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