In the global gold landscape, Asia's weight continues to rise, attracting increasing attention from international financial institutions. A recent DBS Bank white paper survey shows that many central banks have included Asia as a potential location for their gold reserves. Amidst this geopolitical shift, gold is no longer merely a historical asset; local Asian gold infrastructure and digital gold products are reshaping the global gold ecosystem.

DBS's latest survey results show that several central banks are inspecting gold storage facilities in Asia.

This white paper, titled "Gold in an Era of Change," was released by DBS Bank, headquartered in Singapore and operating in 19 Asian markets. It focuses on the evolving role of gold in the global financial system, the rise of Asian gold hubs, and the development potential of tokenized gold. The research, commissioned by DBS and independently completed by Kantar in September 2026, included central banks, asset management institutions, and banks from various countries. DBS Bank released the research findings on November 10th. The survey shows that approximately half of the surveyed asset management institutions and banks indicated that national-level gold infrastructure development in Asia has increased their interest in Asian gold hubs; 25% of the surveyed central banks are currently assessing whether to locate their official gold reserves in Asia, meaning one in four central banks is conducting such an assessment. The report notes that market liquidity, a clear regulatory framework, and reliable infrastructure are indispensable for translating these intentions into concrete implementation. Approximately half of the central banks cited legal stability and political neutrality as their primary considerations when selecting new storage locations. DBS Bank Chief Economist Taimur Baig said that Asia has long been a core demand location for physical gold globally, but gold trading infrastructure is mostly concentrated in Western financial centers; as Asia's gold market status rises and new investment channels emerge, building a credible market infrastructure is crucial.

Central bank gold purchases have become a long-term pillar, and gold's positioning has shifted towards a strategic asset.

The report points out that against the backdrop of an increasingly fragmented geopolitical environment, central banks are optimizing their foreign exchange reserve structures, and central bank gold holdings have become the most important structural support for the global gold market. In the past, central bank gold holdings stemmed from historical arrangements of the gold standard era, but today, the logic behind gold allocation by various countries is more forward-looking; gold is viewed as a strategic reserve asset, rather than a passively held old asset. The report cites data from the World Gold Council, showing that between 2009 and 2025, driven by factors such as geopolitical tensions, rising sanctions risks, and excessive concentration of reserve assets, global central bank gold holdings will steadily increase by an average of 1.2% annually, providing continuous and stable underlying support for gold prices.

Diversified gold investment channels and significant role of infrastructure development in Asia to address shortcomings

Financial institutions are generally optimistic about the growth potential of various gold investment products in Asia. Aside from physical gold, the surveyed institutions predict that gold ETFs, gold derivatives, and tokenized gold will have the highest growth potential over the next 12 months, accounting for 27%, 27%, and 18% respectively. When choosing a gold trading hub, institutions prioritize liquidity, regulatory transparency, clearing and custody systems, and cost advantages, while time zone compatibility and geographical distance have lower priorities. By 2025, demand for physical gold bars, coins, and jewelry in Asia will account for more than half of the global total; last year, global gold demand exceeded 5,000 tons, reaching a record value of US$555 billion. DBS Bank believes that improving local gold infrastructure in Asia can enhance liquidity during Asian trading hours, establish a local clearing and settlement system, and further boost gold bar trading activity.

Conclusion

Asia's gold demand is already leading the world, but its supporting infrastructure development is still catching up. The fact that many central banks are actively exploring Asian storage facilities directly reflects the global trend towards reserve diversification. The subsequent development of innovative businesses such as gold custody, clearing, and tokenized gold in Asia will continue to alter the long-standing Western dominance of gold trading infrastructure, and will have a long-term impact on global gold pricing and capital flows.