Financial institutions eye Asian gold hubs like Singapore: DBS survey
However, implementation might still be a distance away, the survey noted.
DBS Bank's recent survey reveals that half of the central banks polled are increasingly interested in utilizing Asian gold hubs, primarily driven by improved infrastructure for gold storage and trading. The survey, conducted in September by Kantar, was released on November 10 and also found that over half of asset managers and banks share this sentiment. However, only a quarter of central bank respondents are actively considering Asian gold hubs for storing official reserves.
Li Zhen, head of foreign exchange and precious metals at DBS, highlighted that advancements in trusted infrastructure, modern clearing and settlement, and financial products are revolutionizing gold access. The report, "Gold in an Age of Transformation," notes that both Singapore and Hong Kong have ramped up efforts to establish themselves as leading gold hubs.
Singapore, in particular, is making strides by developing gold-related capital market products, aligning with international standards for vaulting and logistics, and establishing a clearing system for over-the-counter gold trades.
Singapore has also unveiled plans to enhance its status as a gold trading center, including the creation of gold-linked financial products and bolstering its clearing and settlement capabilities. DBS, Southeast Asia's largest lender, has increased its vaulting space in 2026 to accommodate growing demand from private wealth and institutional clients. OCBC Bank, too, is reportedly exploring options to secure additional storage space with precious metal storage providers.
Hong Kong, on the other hand, aims to expand its gold storage capacity by more than tenfold to over 2,000 tonnes by 2030 and is working on a central clearing and settlement system for gold, set to launch in early 2027. DBS chief economist Taimur Baig emphasized that developing trusted market infrastructure will be crucial as Asia's role in the gold market expands and new investment channels emerge, especially since Singapore is well-positioned to support this transformation, leveraging its strengths in regulation, institutions, and financial market infrastructure.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.