London gold vault stores 400,000 bars for central bank reserves
The Bank of England has detailed its wholesale banking and custody operations for foreign central banks, which include managing sterling CHAPS accounts and safeguarding 400,000 gold bars. The facilities support global reserve management and financial stability.
From sterling payments to 400,000 gold bars
The Bank of England provides wholesale banking facilities to foreign central banks, anchored by mandatory sterling accounts operating through CHAPS and SWIFT.
While 25 percent of central bank customers use only sterling payment accounts, the remaining 75 percent utilize additional facilities.
These include fixed-term deposits from one week to one year, securities custody via direct membership in CREST and Euroclear, and allocated gold storage.
The London vaults hold an annual average of roughly 400,000 gold bars, representing 60 percent of all gold stored in London.
Ownership changes occur via Book Entry Transfers using unique bar numbers without physical relocation.
Public mission over commercial profit
Unlike commercial lenders, the central bank operates these services on a non-profit basis to reinforce international financial stability and bilateral central bank cooperation.
The Customer Banking Division, reporting to the Deputy Governor for Markets and Banking, oversees the operations alongside accounts for the UK Government and central counterparties.
All transactions require strict sanctions compliance, while the Bank monitors tokenization initiatives for future modernization.
Quiet plumbing for sovereign reserves
The overview clarifies the quiet operational plumbing that secures London’s primacy in sovereign reserve custody.
Offering default-free custody alongside book-entry liquidity gives foreign central banks unmatched operational certainty.
Long-term relevance will hinge on whether legacy vaults adapt to emerging asset tokenization.
Source: Banking services for central bank customers
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