Asian gold hubs gain traction
Growing interest in Asian gold hubs and rising expectations for tokenised gold could reshape the global gold market, according to a new report by DBS Bank.
The white paper, Gold in an Age of Transformation, found that around half of surveyed asset managers and banks said state-backed gold infrastructure had increased their interest in Asian markets. Meanwhile, one in four central bank respondents were evaluating the region as a potential location for storing official gold reserves.
The findings come as global gold demand surpassed 5,000 tonnes in 2025, reaching a record value of US$555 billion. Asia accounted for more than half of physical bar and coin investment, as well as jewellery demand.
DBS said this creates opportunities for Singapore to strengthen its position as a regional gold hub, complementing established centres such as London and New York.
Around 50% of respondents identified legal stability and political neutrality as the most important considerations when selecting a new gold storage location. Financial institutions also prioritised market liquidity, regulatory clarity, clearing and custody infrastructure, and cost efficiency.
Tokenised gold among fastest-growing investment channels
Alongside physical gold, investors expect exchange-traded funds and derivatives to see the strongest growth over the next 12 months, both attracting 27% of responses. Tokenised gold ranked third at 18%.
Tokenisation offers potential benefits including fractional ownership, near-instant settlement and round-the-clock trading. However, around half of respondents said greater legal and regulatory clarity would be needed to accelerate adoption.
Li Zhen, Head of Foreign Exchange and Precious Metals, Global Financial Markets at DBS, said trusted infrastructure, modern clearing and settlement systems, and financial innovation were transforming access to gold.
As the market evolves, investors will increasingly rely on trusted partners to provide the safeguards and certainty needed to participate with confidence, he said.
Singapore's opportunity
Taimur Baig, Chief Economist at DBS Bank, noted that while Asia has long been the leading source of physical gold demand, much of the trading infrastructure remains concentrated in Western financial centres.
He said Singapore was well positioned to support the market's evolution through its strengths in regulation, institutions and financial infrastructure.
Developing regional gold infrastructure could deepen liquidity during Asian trading hours, improve local clearing and settlement, and support more efficient price discovery.
The report was launched at DBS' fifth annual Metals & Mining Forum on 10 November and draws on insights from central banks, asset managers and banks across Asia, the Middle East and Europe.
It follows DBS' introduction of Physical Gold Tokens in June 2026. The digital tokens are backed by physical gold stored in the bank's Singapore vaults, combining gold vaulting, tokenisation, digital custody and distribution.
The initiative reflects the growing convergence of traditional precious metals markets and digital financial infrastructure.
