DBS expanded its vaulting capacity in 2026 to meet rising demand from private wealth and institutional clients, the bank said in an emailed response to Bloomberg last week.
OCBC Bank, Singapore’s second largest lender, has also contacted precious metal storage providers about obtaining additional space, according to people familiar with the matter.
Deutsche Bank is likewise considering an expansion, another person said. The size of the planned vault expansions remains under discussion, and the plans could change, the people said, asking not to be identified because the discussions are private.
Banks generally hire logistics providers to handle the storage and transportation of gold, although some, including UOB, operate their own vaults.
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A stack of gold bars from the vaults of the United Overseas Bank of Singapore, June 2010. Photo by SPH Media via AFP |
The third-party providers lease space at private facilities such as Le Freeport, a high-security site in Singapore known as Asia’s Fort Knox and owned by a crypto billionaire.
Le Freeport has seen increasing demand for gold storage in recent years, with its basement vaulting area now nearly full.
Several people familiar with the matter said some banks may be unable to store bullion in the basement, their preferred location because of its greater security and higher load-bearing capacity, which allows more bars to be stacked than on upper floors.
Expanding vault capacity is a key part of Singapore’s plans to establish a gold clearing system as it seeks to become a global hub for the precious metal. All clearing banks will need enough capacity to store and settle large volumes of bullion.
Singapore’s ambitions are unfolding alongside those of regional rival Hong Kong, which began testing a new clearing system in July while seeking to attract foreign banks to store gold, according to The Business Times.
Singapore can hold at least 2,200 tonnes of gold at privately owned facilities, with 1,700 tonnes at Le Freeport and 500 tonnes at The Reserve, The Financial Times reported. Hong Kong has pledged to increase its total storage capacity to 2,000 tons within three years.