Singapore’s gold hub plan gets lift with DBS vault expansion

Singapore's ambition to become a major gold hub is gaining traction, with DBS Bank expanding its vault capacity to accommodate the rising demand from private wealth and institutional clients. The bank announced in September 2026 that it has increased its vaulting space, signaling support for the growing requirements. OCBC has also sought additional storage space from precious metal storage providers, while Deutsche Bank is contemplating an expansion as well.

The scale of vault growth for the banks remains under discussion and may be subject to change, according to people familiar with the matter. The development of vault capacity is critical to Singapore's plan to launch a gold clearing system as part of its broader objective to establish itself as a global center for the precious metal.

Clearing banks will require ample storage and settlement capacity for large volumes of bullion. While most banks rely on third-party logistics providers for storage and movement of gold, some, such as Singapore-based UOB, operate their own vaults. The high-security facility Le Freeport is grappling with increasing demand for gold storage and is nearing full capacity.

Some banks might struggle to store bullion in its basement due to enhanced security and higher load-bearing capacity, which allows for more bars to be stacked compared to upper floors. Singapore's efforts mirror those of regional rival Hong Kong, which initiated a trial run of a new clearing system in July and is exploring the possibility of establishing a price benchmark for gold traded and settled in Singapore.

The Monetary Authority of Singapore responded to inquiries related to the story by referencing a prior statement by the Deputy Prime Minister on the plans for a local gold clearing system. Presently, Singapore can store up to 2,200 tonnes of gold at privately-owned facilities, with 1,700 tonnes at Le Freeport and 500 tonnes at The Reserve. Hong Kong aims to increase its storage capacity to a total of 2,000 tonnes within three years.