Singapore’s gold hub ambition gets lift with DBS vault expansion
Other banks like OCBC and Deutsche Bank are also considering increasing their bullion storage.
Singapore's ambition to become a major gold hub has received a significant boost with DBS Group Holdings increasing its vaulting space in 2026. The Southeast Asian banking giant aims to cater to the growing demand from both private wealth and institutional clients. DBS's expansion in vault capacity follows several other banks, including OCBC Bank and Deutsche Bank, considering similar moves to secure more storage space.
While the exact scale of the vault growth remains under discussion, plans are subject to change. Banks typically contract logistics providers to manage the storage and movement of gold, though some entities, like UOB, operate their own vaults. One prominent storage facility in Singapore, Le Freeport, owned by a crypto billionaire, has been facing rising demand and has nearly filled its basement vaulting space.
Due to enhanced security and higher load-bearing capacity, some banks may find it challenging to store bullion in Le Freeport's basement. The expansion of vault capacity is crucial for Singapore's plan to launch a gold clearing system, enabling clearing banks to store and settle large volumes of bullion. This endeavor is part of Singapore's broader strategy to become a regional and global hub for precious metals, rivaled by Hong Kong, which has pledged to expand its storage capacity to 2,000 tons within three years.
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