DBS Expands Gold Storage as SGX Prepares Gold Clearing
DBS has increased its Singapore gold storage capacity following client demand, ahead of the Singapore Exchange's planned launch of an over-the-counter gold clearing system by late 2026.
DBS Expands Gold Storage
DBS has increased its gold storage capacity in Singapore, driven by demand from both private wealth and institutional clients. This expansion aligns with Singapore's preparations to introduce a domestic gold clearing system. The move reflects growing interest in physical gold services, particularly among the bank's private banking customers. DBS's decision comes as the city-state strengthens its position as a regional hub for precious metals.
SGX Readies OTC Clearing System
The Singapore Exchange (SGX) plans to launch an over-the-counter (OTC) clearing system for locally stored gold by the end of 2026. Several major banks have agreed to participate as clearing members. These include DBS, Deutsche Bank, ICBC Standard Bank, JPMorgan, OCBC, and UOB.
Singapore is also considering establishing a reference price for gold traded and settled within the city-state, further developing its local gold market infrastructure.
Capacity Challenges Emerge
Singapore’s private gold storage facilities currently offer capacity for at least 2,200 tonnes. Le Freeport accounts for approximately 1,700 tonnes of this total, while The Reserve provides an additional 500 tonnes. Le Freeport indicated in May 2026 that its basement vaulting area was nearing full capacity.
This situation suggests that some banks may find it challenging to secure adequate storage space. OCBC has already contacted storage providers about additional capacity, and Deutsche Bank is exploring similar options.
Regional Market Development
The developments in Singapore mirror efforts in other regional financial centres. Hong Kong, for instance, began testing its own gold clearing system in July 2026 and introduced the HAU gold price ticker. Hong Kong also aims to increase its gold storage capacity to 2,000 tonnes within the next three years.
For Asian investors and institutions, these initiatives enhance market infrastructure, potentially improving liquidity and price transparency for physical gold stored in the region. This competitive expansion underscores a growing regional focus on gold as a tangible asset.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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