Swiss Bank UBS Tests Tokenized Gold on Ethereum ZKsync Network

• UBS Explores Tokenized Gold on Ethereum Layer-2 ZKsync.
• UBS Key4 Gold promotes fractional and secure investment in gold.
• PoC with ZKsync Validium highlights scalability and security.

Switzerland’s largest bank, Union Bank of Switzerland (UBS), is innovating by testing a new financial product based on blockchain technology: tokenized gold. This product is being implemented on the Ethereum Layer-2 scaling solution known as ZKsync (ZK).

According to information shared on social media by ZKsync developers, UBS is exploring the use of blockchain to improve global accessibility to gold investments. The product being tested, called UBS Key4 Gold, gives customers the ability to trade gold units directly on the blockchain.

In a Proof-of-concept, UBS deployed smart contracts on a ZKsync Validium testnet to simulate the UBS Gold Network and replicate key functions like

→ Gold token issuance
→ Transaction processing
→ Reconciliation

The successful PoC demonstrated that ZKsync Validium mode was…

— ZKsync (∎, ∆) (@zksync) January 31, 2025

During a PoC (proof of concept) for UBS Gold, the team tested ZKsync Validium, focusing on critical issues such as scalability, privacy and interoperability, which are essential for the global expansion of the service. UBS Key4 Gold promises to transform gold investing by offering fractionalized transactions, real-time prices, high liquidity, secure physical storage and the option of physical gold delivery. Additionally, the service is powered by the UBS Gold Network, a permissioned blockchain that connects vaults, liquidity providers and distributors.

Initial results from UBS’s use of smart contracts on the Validium testnet have been positive. Alex Gluchowski, co-founder of ZKsync, expressed his optimism for the future of digital investments, stating: “This PoC reflects UBS’s continued efforts to explore how blockchain can enhance its financial offerings and support its broader digital asset strategy. I firmly believe that the future of finance will happen on-chain and ZK technology will be the catalyst for growth. This PoC is a testament to the fact that ZKsync is the ideal home for tokenized assets, building Web3 without compromise. We are excited to play an integral role in the continued evolution of the space.”