Singapore’s Monetary Authority of Singapore (MAS) opened a gold custody service Nov. 10 for foreign central banks and other official institutions, adding a Singapore-based option for managing bullion reserves.
The national currency vault has room for up to 500 metric tons of gold, and MAS said it can increase capacity as demand grows. International financial institutions and sovereign entities may also qualify to use the service. MAS assigns and records specific bars for each customer, and deposits must meet the London Bullion Market Association’s Good Delivery standards.
Select bullion banks operating in Singapore with relevant expertise may apply for custody accounts. Through separate agreements with customers, participating banks can offer bullion services and trading liquidity during Asian trading hours, MAS said.
The launch builds on Singapore’s earlier plans to develop its gold market. MAS said the custody service gives reserve holders another place to store gold and connect with bullion bank counterparties in the region.
MAS and Singapore’s Ministry of Finance also plan to extend an existing Goods and Services Tax (GST) waiver. The current waiver covers specified goods transactions involving investment precious metal gold; the proposed framework would add specified wholesale services between covered institutional participants. MAS said the change is intended to support wholesale gold activity involving metal not meant for domestic consumption. The framework is expected to take effect in April 2027, with further details due at Budget 2027.
Separately, SGX Group and six banks are developing a gold clearing system, with live operations expected in the first quarter of 2027, MAS said.
