JPMorgan (JPM.N) will join HSBC (HSBA.L) in storing bullion for the world's biggest gold-backed exchange-traded fund (ETF), the fund's operator said on Thursday, ending its rival's sole guardianship of the $52 billion stash of gold.
The change is a boon for JPMorgan, which could rake in millions of dollars of storage fees.
HSBC had been the sole custodian of gold for SPDR Gold Trust, also known as GLD, since the fund launched in 2004. The bank currently stores about 910 tonnes of gold for GLD in London.
"The addition of JPM will change the current, single-custodian and vault operating model, to accommodate the activity of the fund in anticipation of future growth," the World Gold Council (WGC), which runs the fund, said in a statement.
HSBC said: "We're pleased to continue acting as a custodian for the World Gold Council's SPDR Gold Trust."
The U.S. bank will become a custodian for GLD from Dec. 6, the WGC said.
