Deutsche Bank joins Singapore’s gold clearing initiative as clearing member

Deutsche Bank has entered into a Memorandum of Understanding (MOU) with Singapore Exchange (SGX) and other industry participants to become a gold clearing bank and support the development of Loco Singapore, Singapore’s over-the-counter (OTC) gold clearing system.

Led by the Monetary Authority of Singapore (MAS) and the Singapore Bullion Market Association (SBMA), the initiative is a significant step in strengthening Singapore’s position as a trusted global gold trading centre serving the Asia-Pacific region and as a key node connecting regional demand with global liquidity while complementing other established gold centres.

Loco Singapore will provide foundational market infrastructure to streamline trade processing, enhance transparency and enable more efficient settlement, responding to growing Asia-led demand from central banks, institutional and private investors seeking diversification. SGX will establish the OTC gold clearing system for Loco Singapore by end of 2026, with interbank trading expected to build from 2027.

As a participating gold clearing bank, Deutsche Bank will work alongside SGX, SBMA and other industry partners to develop Loco Singapore, deepen liquidity, enhance price discovery and risk management and attract greater trading flows into Singapore. The system will support both large bars and kilobars, enabling standardised settlement during Asian trading hours and aligning with international market practices to facilitate cross-border activity by reducing friction across markets.

The initiative is expected to strengthen Singapore’s capacity and attractiveness as a global centre for gold trading, reinforcing its role as a trusted node for gold in the Asia Pacific region connecting regional demand with global liquidity.

Prakash Shah, Global Head of Metals Trading at Deutsche Bank, said: “This initiative is a critical step in strengthening Singapore’s market infrastructure and reinforcing its position as a global gold trading hub."

By improving clearing and settlement efficiency, it will enhance market confidence and encourage greater flows into Singapore. We are pleased to work closely with SGX, SBMA and industry partners to support the development of a deeper, more liquid market. Prakash Shah

Deutsche Bank offers comprehensive precious metals capabilities in Asia, primarily serving corporate and institutional clients. The bank’s precious metals solutions include trading, hedging and derivatives, as well as physical bullion storage, clearing, and distribution.