Overview

The Swiss banking behemoth, UBS, has successfully wrapped up a proof-of-concept for its Key4 Gold offering utilizing the ZKsync Ethereum layer-2 network.

Key Points:

• UBS finished testing its Key4 Gold, allowing clients to claim physical gold digitized on the Ethereum layer-2 network ZKsync.
• This experiment reflects a rise in blockchain technology adoption among established financial institutions.
• UBS has previously ventured into blockchain technology, exemplified by its tokenized money market investment fund, uMint.

Details:

UBS’s Key4 Gold service enables Swiss customers to invest in fractional gold with competitive real-time pricing and options for secure physical storage. The project seeks to balance scalability and privacy in transactions.

In an interview with CoinDesk, Pearl Imbach noted that the bank aimed for a solution that emphasized privacy through technology.

“Only zero-knowledge made sense for them,” Imbach stated, discussing their objectives in enhancing the scale and security of existing operations. ZKsync employs zero-knowledge rollups, a technique designed to expedite blockchain transactions while minimizing costs.

This move signals UBS’s intention to delve deeper into layer-2 technologies to optimize its services. However, the bank did not disclose plans for creating its own layer-2 solution. Imbach emphasized the ongoing discussions on what applications would appropriate for UBS’s operations.

Moreover, Deutsche Bank is similarly exploring ZKsync’s technology, indicating a trend among major banks seeking to integrate blockchain solutions into traditional frameworks.

Conclusion:

Imbach concluded, “With privacy embedded within blockchain, the potential for innovative offerings is substantial, and we anticipate more such implementations in the future.”

For further reading, check out the Deutsche Bank’s exploration of layer-2 blockchain.