Singapore’s Abaxx Exchange to launch new gold contract
SINGAPORE-based startup Abaxx Exchange is launching a new physical gold contract next month, seeking to challenge London and New York’s grip on the global bullion market following gold’s record price rally this year, said the Financial Times on Tuesday.The bourse, which has secured over £77m from investors including BlackRock and CBOE Global Markets, will offer a physical one-kilo gold contract denominated in US dollars and deliverable in Singapore, the paper said.Abaxx CEO Josh Crumb described the current gold market structure as “dysfunctional”, arguing that infrastructure hasn’t kept pace with trading practices. “Our view is that Asia ex-China needs a gold market, to manage physical gold, that is not reliant on New York and London,” said Crumb, citing “geopolitical” risks in these traditional centres.The contract will be Singapore’s only physical gold futures offering, potentially meeting regional demand from jewellery manufacturers and investors, said the Financial Times. “In Singapore, people feel like they are not well served by the existing market,” Crumb said. “The actual real physical demand is kilo bars going into Asia.”Albert Cheng, head of the Singapore Bullion Market Association, commented: “We have the potential to compete with London, but we need the infrastructure to bring in more flows.”Abaxx eventually aims to offer 24/7 trading, pending regulatory approval. The company, majority-owned by Toronto-listed Abaxx Technologies (market cap £180m), expects to reach break-even during 2026.Former Goldman Sachs commodities research head Jeff Currie, an Abaxx board member, told the newspaper the gold contract will gain traction quickly: “It’s going to be the most versatile contract out there.”The post Singapore’s Abaxx Exchange to launch new gold contract appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com
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