UBS tests blockchain for digital gold investments using zkSync

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Grafa2025/02/03 05:40

By:Mahathir Bayena

UBS, Switzerland's largest bank, is exploring blockchain technology to enhance digital gold investments for retail clients.

The bank has successfully completed a proof-of-concept for its fractional gold investment product, UBS Key4 Gold, utilising the Ethereum (CRYPTO:ETH) layer-2 network ZKsync Validium.

This initiative aims to improve scalability, privacy, and interoperability as UBS prepares for a potential global rollout of its digital gold offering.

With over $5.7 trillion in assets under management, UBS is positioning itself at the forefront of integrating blockchain into traditional finance.

The UBS Key4 Gold product was originally developed on the bank's permissioned UBS Gold Network, which connects vaults, liquidity providers, and distributors.

By leveraging ZKsync Validium, UBS seeks to enhance transaction efficiency and user privacy through off-chain data storage.

Alex Gluchowski, the inventor of ZKsync (CRYPTO:ZK), expressed confidence in the future of finance being on-chain.

"I firmly believe that the future of finance will take place on-chain and ZK technology will be the catalyst for growth," he stated.

This pilot project follows UBS's recent launch of a tokenised fund on Ethereum, further integrating digital assets into its financial offerings.

ZKsync aims to achieve ambitious targets in 2025, including processing 10,000 transactions per second (TPS) while significantly reducing transaction fees.

Experts believe that privacy-preserving technologies like ZKsync could drive institutional adoption of blockchain by providing a more comfortable experience for traditional financial institutions.

At the time of reporting, the ZKsync (ZK) price was $0.09763.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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