UBS Successfully Trials Blockchain-Based Gold Investment on ZKSync
UBS has tested its blockchain-based gold investment product, UBS Key4 Gold, on the Ethereum Layer-2 network ZKSync. Key points include:
- The trial utilized ZKSync’s Validium mode for secure fractional gold purchases.
- UBS manages $5.7 trillion in assets and aims to simplify gold investments using blockchain technology.
- Retail investors can buy fractional gold shares with real-time pricing and strong liquidity.
- UBS Gold Network connects vaults, liquidity providers, and distributors.
- Smart contracts were deployed on the Validium testnet for gold token issuance and transaction processing.
- Privacy improvements ensure participants only see their own transactions while maintaining verification systems.
- Integration with stablecoins enhances affordability and scalability of gold token purchases.
- Challenges remain in scalability, privacy, and interoperability for tokenized securities.
- Collaborations with tech providers are essential for innovation in financial services.
UBS and ZKSync's initiatives indicate a trend towards on-chain finance and the potential of zero-knowledge technology in Web3 adoption.