Last updated on June 30th, 2026 at 09:51 am
Singapore will set up a new over-the-counter gold clearing system and introduce central bank gold vaulting services. Deputy Prime Minister Gan Kim Yong made the announcement at the Asia-Pacific Precious Metals Conference.
The Singapore Exchange will build the clearing system for “Loco Singapore” gold, which refers to physical gold stored in Singapore. The system is expected to be ready by the end of this year.
At the same time, the Monetary Authority of Singapore will introduce gold vaulting services for central banks and sovereign institutions by October. This will allow them to store gold reserves securely in Singapore.
Singapore’s Deputy Prime Minister Gan Kim Yong and Cabinet ministers attend their swearing-in ceremony at the Istana in Singapore.
Which banks will support the new gold system?
Six major banks will act as clearing members for the system. These include DBS, OCBC, UOB, Deutsche Bank, J.P. Morgan, and ICBC Standard Bank. These banks will help process trades and support settlement for gold transactions within the new system.
Singapore Exchange is also looking into launching physically deliverable gold futures. This would allow traders to settle contracts with real gold instead of cash.
Authorities also plan to remove a 5% cap on physical precious metals under tax incentive schemes for eligible funds and family offices.
How does this connect to crypto and digital assets?
Singapore’s move shows how modernized assets like gold are traded and stored. While this system is focused on physical gold, the structure is similar to trends seen in crypto markets.
In crypto, platforms are already using tokenized gold products and blockchain-based settlement systems to represent physical assets on-chain. Products like tokenized gold on exchanges and stablecoin-backed commodities follow a similar idea of making real-world assets easier to trade and transfer.
Recent steps by banks such as DBS, which has launched tokenized gold products for retail users, also show how traditional assets are starting to connect with digital infrastructure. The new clearing and vaulting system adds another layer to this change by strengthening Singapore’s role as a regional hub for both physical and digital asset markets.
Meanwhile, Singapore Gulf Bank has partnered with Standard Chartered to strengthen cross-border payment and settlement services for the digital asset industry, as competition for regulated stablecoin infrastructure continues to grow across Asia and the Middle East.
Enjoyed this? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads and CoinMarketCap Community for seamless access to high-quality industry insights.
Take control of your crypto portfolio with DEFI PLANET PRO, DeFi Planet’s suite of analytics tools.
