Union Bank of Switzerland (UBS) is currently testing a tokenized gold product using Ethereum (ETH) and its Layer-2 scaling solution, ZKsync (ZK). Enhancing Functionality The developers behind ZKsync revealed that UBS is experimenting with its tokenized gold investment products on the blockchain to enhance functionality for global use. The product, called UBS Key4 Gold, which enables users to buy and sell fractional units of gold on-chain, is being tested on the Layer-2 network, as confirmed by the devs. In a Proof of Concept (PoC) for UBS Gold, the largest financial institution in Switzerland started exploring ZKsync Validium. The objective is to tackle scalability, privacy, and interoperability for worldwide adoption. A Broad Strategy UBS Key4 Gold offers fractional gold investments for retail customers, featuring real-time pricing, high liquidity, secure physical storage, and the option for delivery. UBS Key4 Gold is built on the UBS Gold Network, a permissioned blockchain that links vaults, liquidity providers, and distributors. ZKsync highlighted that the deployment of smart contracts on the UBS testnet, Validium, was successful. Co-founder Alex Gluchowski said the PoC reflects an ongoing exploration of how blockchain technology can enhance UBS and its financial services while contributing to its broader digital asset strategy.
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