UBS, Switzerland’s largest bank, has successfully tested its fractional gold investment product called UBS Key4 Gold. This project uses blockchain technology on ZKsync Validium, which is a layer 2 solution on the Ethereum network. UBS manages assets worth $5.7 trillion and is leading the way in combining blockchain with traditional finance.
The goal of UBS Key4 Gold is to make gold investments accessible to retail investors. The bank is working on improving privacy and interoperability, which are important for launching a global product. By using ZKsync technology, UBS can handle more transactions while keeping data private.
Initially, UBS Key4 Gold was developed on the UBS Gold Network, a private blockchain that connects vaults, liquidity providers, and distributors. The integration with ZKsync Validium allows for more efficient and secure transactions by storing data off-chain. This enhances both privacy and scalability for the investment product.
Alex Gluchowski, the creator of ZKsync, believes that the future of finance will be on-chain, and ZK technology will drive this growth. This blockchain solution marks a significant step in UBS’s efforts to strengthen its financial services with blockchain.
UBS Key4 Gold enables investors to buy fractional gold, making it easier for them to enter the gold market. The use of blockchain ensures secure and streamlined transactions, appealing to retail investors interested in tangible assets.
This development comes just three months after UBS launched a tokenized fund on Ethereum, showing its commitment to integrating blockchain into traditional finance. By 2025, ZKsync is expected to process up to 10,000 transactions per second, reducing transaction fees and attracting more blockchain developers.
