Singapore is preparing to make a significant impact on the global gold market, potentially disrupting the longstanding dominance of financial hubs like London and New York. Abaxx Exchange, a Singapore-based start-up, is set to launch a new physical gold futures contract next month, positioning itself as a serious contender in the bullion trading sector.
The exchange, which has garnered support from prominent investors including BlackRock and CBOE Global Markets, has raised over $100 million in funding. Abaxx plans to introduce a one-kilogram gold contract, priced in U.S. dollars and physically deliverable in Singapore. This move comes at a time when gold prices are experiencing a surge, driven by rising demand in Asia, concerns over economic stability, and a growing desire to diversify away from the U.S. dollar.
Abaxx CEO Josh Crumb has criticized the existing gold market, calling it “dysfunctional” due to outdated infrastructure and an overreliance on Western financial centers. “Our view is that Asia, excluding China, needs a gold market that is not reliant on New York and London,” Crumb said in an interview with the Financial Times, citing geopolitical risks linked to these markets.
Singapore, already a key financial hub, is well-positioned to take advantage of the rising regional demand for physical bullion, particularly among jewelry manufacturers and investors across Asia. “In Singapore, people feel they are not well served by the existing market,” Crumb noted, highlighting the region’s growing demand for kilo-sized gold bars.
Albert Cheng, head of the Singapore Bullion Market Association, shared similar views, stating, “We have the potential to compete with London, but we need the infrastructure to bring in more flows. The physical gold contract can help with that.”
Abaxx’s gold futures contract will be the fifth offering from the exchange, which has already launched contracts in carbon, liquefied natural gas, nickel sulfate, and lithium carbonate—though these earlier products have not yet attracted significant trading volumes. Executives believe that gold’s established liquidity will help the new contract gain traction more quickly.
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. This could be a game-changer in a market traditionally closed on weekends.
The initial launch will follow standard bullion trading hours, running from Sunday evening to Friday evening (London time). However, Abaxx’s long-term goal is to establish continuous, round-the-clock gold trading, further distinguishing itself from traditional markets.
Abaxx Technologies, the parent company of the exchange, is listed in Toronto and currently has a market capitalization of approximately $235 million. Crumb has stated that the company aims to reach break-even status by 2026.
As Singapore positions itself as a potential new global bullion hub, the introduction of this gold futures contract could represent a pivotal moment in the decentralization of the gold market. Whether Abaxx can rival the dominance of London and New York remains to be seen, but with heavyweight investors and a growing regional demand behind it, the exchange is making a serious bid for global relevance.
