UBS, the largest bank in Switzerland, is currently testing a tokenized gold product on Ethereum (ETH) layer-2 scaling solution ZKsync (ZK).
According to a recent update on social media platform X, the developers of ZKsync announced that UBS is exploring the use of blockchain technology to enhance the functionality of its tokenized gold investment products for a global audience.
The product in question, UBS Key4 Gold, enables users to trade units of gold on-chain and is currently undergoing testing on the layer-2 network. The developers of ZKsync shared, “UBS, Switzerland’s largest bank, is modernizing digital gold investments on ZKsync. In a PoC for UBS Gold, they tested ZKsync Validium to address scalability, privacy, and interoperability for global expansion.“
UBS Key4 Gold offers fractional gold investments for retail clients with features such as real-time pricing, deep liquidity, secure physical storage, and optional delivery. This product is built on the UBS Gold Network, a permissioned blockchain that connects vaults, liquidity providers, and distributors.
ZKsync also confirmed that UBS successfully deployed smart contracts on its testnet Validium. Co-founder of ZKsync, Alex Gluchowski, stated, “This PoC demonstrates UBS’ commitment to exploring blockchain technology to enhance its financial services and digital asset strategy. We believe that the future of finance will be on-chain, with ZK technology driving growth.“
“ZKsync is the perfect platform for tokenized assets, enabling Web3 development without compromise. We are excited to be part of the ongoing evolution of this space.”
ZK is currently trading at $0.142, reflecting a 6.8% decrease for the day.
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Image Credit: Midjourney