UBS Unveils Blockchain Gold: Revolutionizing Investments

Switzerland's largest bank, Union Bank of Switzerland (UBS), is exploring the potential of blockchain technology in the realm of gold investments. In a recent development, UBS has begun testing a tokenized gold product on Ethereum's layer-2 scaling solution, ZKsync.

The product, UBS Key4 Gold, enables users to buy and sell units of gold on the blockchain, offering fractional gold investments for retail clients. It also provides real-time pricing, deep liquidity, secure physical storage, and optional delivery. The product is built on the UBS Gold Network, a permissioned blockchain that connects vaults, liquidity providers, and distributors.

UBS is testing this product on ZKsync's testnet, Validium, with the aim of addressing scalability, privacy, and interoperability for global expansion. The bank's goal is to modernize digital gold investments and enhance its financial offerings while supporting its broader digital asset strategy.

ZKsync, the developer behind the layer-2 solution, has confirmed the success of UBS deploying smart contracts on its testnet. Alex Gluchowski, co-founder of ZKsync, expressed his enthusiasm about the potential of ZK technology as a catalyst for growth in the future of finance. He believes that ZKsync is the ideal home for tokenized assets, enabling the development of Web3 without compromise.