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Citi joins London gold clearing network in first new entry in a decade

Citi joins London gold clearing network in first new entry in a decade

Citi becomes the fifth clearing member of London Precious Metals Clearing Limited, adding direct settlement access and vaulting capacity near Heathrow as London’s bullion infrastructure gains a new entrant after years of concentration.

Fact Check
Both the Reuters primary report and the official Citi/Business Wire press release confirm the core claim. Reuters states Citi is 'now the fifth bank to clear transactions in London's over-the-counter gold market, joining the London Precious Metals Clearing Limited (LPMCL)' and that 'the move marks the first addition to the clearing group in a decade,' joining HSBC, ICBC Standard Bank, JPMorgan and UBS. The Business Wire release confirms Citi added Loco London settlement for gold, silver, platinum and palladium. These align fully with the claim.
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Summary

Citi has joined London Precious Metals Clearing Limited as its fifth clearing member, becoming the first new entrant to the network in about a decade and taking a direct role in the settlement infrastructure at the core of London’s bullion market. LPMCL handles the net settlement of more than 20 million ounces of gold a day in a precious-metals market with estimated daily turnover of around $160 billion. The bank is supporting its clearing role with physical infrastructure, including a vault near Heathrow Airport being established with Malca-Amit to support gold settlement services. Citi’s entry follows governance changes that began in 2018 to clarify admission rules and make the clearing group more open to new members. The development could also matter for digital-asset markets because LBMA-approved London vaults underpin some gold-backed tokens, including Paxos Gold and Tether Gold. Investors are now likely to watch whether Citi’s Heathrow-area vault operations obtain LBMA Good Delivery approval, which would make them eligible to hold metal backing tokenized gold products.

Terms & Concepts
  • gold-backed tokens: Digital tokens designed to track the value of physical gold held in custody.
  • LBMA Good Delivery: A London bullion market standard that sets requirements for gold bars and approved storage used in professional settlement.
  • over-the-counter bullion market: A market where precious metals are traded directly between counterparties rather than on a central exchange.