Singapore has launched a gold vaulting service for foreign central banks and official institutions, seeking to attract growing demand for alternative locations to store bullion.
In a statement on Tuesday (10 November), the Monetary Authority of Singapore (MAS) said the service forms part of its efforts to establish the country as a trusted gold trading hub for the Asia-Pacific region.
The gold will be stored in Singapore’s national currency vault, which has a capacity of up to 500 tonnes, with room for expansion as demand grows.
The service will provide foreign central banks with secure gold storage and access to market liquidity during Asian trading hours, MAS said.
According to Bloomberg, Deputy Prime Minister and MAS Chairman Gan Kim Yong told reporters that several foreign central banks had expressed interest in storing gold in Singapore, although he did not identify them.
“With the growing demand for gold as a reserve asset, I think central banks are also looking for alternatives, looking for more options to strengthen their resilience in terms of their gold reserves,” Gan said.
MAS will also offer gold custody accounts to selected Singapore-based bullion banks with experience in providing gold-related services and trading liquidity.
Building a regional gold hub
Singapore has been expanding its gold market infrastructure in recent months as it seeks to capture a larger share of global bullion trading.
Its plans include a new over-the-counter gold-clearing system involving banks such as JPMorgan (NYSE:JPM) and Deutsche Bank (NYSE:DB), alongside improvements to logistics and bullion-linked financial products.
MAS said industry testing of the clearing system has been completed, with live trading and market operations expected to begin in Q1 2027.
Separately, the Singapore Exchange is targeting Q2 2027 for the launch of physically deliverable gold kilobar futures.
These developments are aimed at strengthening Singapore’s position as a regional centre for gold storage, trading, and settlement.
Competition with Hong Kong
Singapore is not alone in its efforts to become a major gold trading hub in Asia.
Hong Kong is also seeking to attract central banks looking to diversify their gold storage locations, and has already begun trial operations of its own gold clearing system.
Both financial centres also presented their plans at a major bullion industry conference in October.
However, Gan downplayed the competition between the two markets.
“The market is growing. It’s not a zero-sum game,” he said.
“Singapore does not aim to replace other gold centres and gold vaulting services.”
Instead, Singapore is positioning itself as another option for central banks seeking to diversify their gold reserves and access the growing Asian bullion market.
Write to Jackson Chen at Mining.com.au
Main Image: Singapore Bullion Market Association
