OCBC bank explores physical gold custody business for institutional, wealthy clients
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[SINGAPORE] Singapore’s Oversea-Chinese Banking Corp (OCBC) is exploring a physical gold custody business for institutional and high-net-worth clients as demand for its app-based gold trading product accelerates, senior executives said on Wednesday (Feb 25).
The potential move by the second-largest bank in Singapore comes as gold prices have hit fresh highs, drawing interest from investors seeking a haven with exposure to the precious metal.
Kenneth Lai, OCBC’s head of global markets, said the bank is taking a two-fold approach to its gold strategy, spanning “custody on-chain and out-of-chain”.
He said the bank is exploring physical, allocated gold custody for institutions that typically require reputable third-party custodians.
“On-chain” refers to custody fully recorded and managed within a closed system in which gold is traded and tracked directly from one vault to another without leaving the secure network, according to OCBC.
Being outside the chain of custody refers to situations where gold is withdrawn and stored outside this system.
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OCBC does not currently offer physical gold to retail customers, executives said.
Lai was speaking in a briefing after the bank released its fourth-quarter earnings, which beat expectations.
Spot gold was trading at around US$5,188 an ounce on Tuesday.
OCBC’s current retail-focused offering is “unallocated” gold, which is often described as “paper gold,” allowing customers to trade without taking delivery, according to Lai.
Lai added the bank offers trading access around the clock, including providing prices on weekends after New York market hours.
Sunny Quek, OCBC’s head of global consumer financial services, said gold trading has been available on the bank’s app since 2021 and demand has sharply accelerated since last year.
“In 2025, we grew eight times ... and for the first two months of this year, we’re almost at last year’s level already,” Quek said. REUTERS
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