Singapore is preparing to shake up the global gold market with a bold move that could challenge the longstanding dominance of London and New York. According to a recent report by the Financial Times, Singapore-based start-up Abaxx Exchange is launching a new physical gold futures contract next month, positioning itself as a viable alternative in the bullion trading world.
Backed by major investors including BlackRock and CBOE Global Markets, Abaxx has raised over $100 million in funding. The exchange plans to introduce a one-kilogram gold contract, denominated in U.S. dollars and physically deliverable in Singapore. The move comes amid a surge in gold prices this year, driven by investor demand in Asia, concerns over economic stability, and diversification away from the U.S. dollar.
Abaxx CEO Josh Crumb criticized the current structure of the gold market, calling it “dysfunctional” due to outdated infrastructure and an overreliance on Western financial hubs. “Our view is that Asia ex-China needs a gold market to manage physical gold that is not reliant on New York and London,” Crumb told the Financial Times, citing geopolitical risks associated with those markets.
Singapore, already a significant financial hub, appears poised to capitalize on a growing regional demand for physical bullion, particularly from jewelry manufacturers and investors in Asia. “In Singapore, people feel like they are not well served by the existing market,” Crumb noted, emphasizing the region’s demand for kilo bars of gold.
Albert Cheng, head of the Singapore Bullion Market Association, echoed these sentiments, saying, “We have the potential to compete with London, but we need the infrastructure to bring in more flows and the physical gold contract can help with that.”
The new gold futures will be the fifth contract launched by Abaxx, which already offers contracts in carbon, liquefied natural gas, nickel sulphate, and lithium carbonate—though these earlier contracts have yet to attract significant trading volumes. Executives believe gold’s global liquidity will help the new offering gain traction more rapidly.
Jeff Currie, former head of commodities research at Goldman Sachs and now a board member at Abaxx, described the new contract as “the most versatile contract out there,” especially if it receives regulatory approval for 24/7 trading—a potential game-changer in a market traditionally closed on weekends.
The initial rollout will follow standard bullion trading hours, running from Sunday evening to Friday evening (London time). Still, Abaxx’s long-term ambition is to make gold trading a continuous, round-the-clock operation, further distinguishing itself from traditional markets.
Abaxx Technologies, the Toronto-listed parent company of the exchange, currently holds a market capitalization of approximately $235 million. According to Crumb, the company is targeting break-even status by 2026.
As Singapore positions itself as a new global bullion hub, the launch of this contract could mark a pivotal moment in the decentralization of the gold market. Whether it can truly rival London and New York remains to be seen, but with heavyweight investors and growing regional demand behind it, Abaxx is making a serious bid for relevance on the world stage.
