UBS Completes Proof-of-Concept for Key4 Gold on zkSync Network
UBS has completed a Proof-of-Concept for its Key4 Gold offering on the Ethereum layer-2 network, zkSync. This initiative allows Swiss clients to invest fractionally in gold with real-time pricing and liquidity.
Key Developments
- UBS Key4 Gold enables easy buying and selling of physical gold via smartphones.
- Clients can request secure storage or physical delivery of their gold.
- The service is part of UBS's broader exploration of blockchain, following the launch of uMint, a tokenized money market investment fund.
- UBS is seeking to scale its private blockchain, the UBS Gold Network, using zero-knowledge proofs for enhanced privacy and efficiency.
- The successful zkSync test indicates potential adoption of layer-2 solutions for financial products.
Industry Context
UBS's move aligns with a trend among major banks like JPMorgan and Deutsche Bank, who are exploring blockchain for tokenization and digital asset services. Deutsche Bank plans to build its own layer-2 network using zkSync technology. The shift towards blockchain integration highlights its growing importance in institutional finance.
Overall, UBS's developments suggest a significant movement toward more blockchain-powered banking solutions within the financial sector.