A ZKSync informed That UBS, which manages $ 5.7 trillion actives, is exploring how blockchain can simplify gold investments.

The test focuses on allowing Bank Swiss customers to buy physical gold directly through a blockchain -based system, ensuring scalability, privacy and interoperability.

UBS Key4 Gold allows retail investors to buy fractional gold shares by offering real time prices, high liquidity and safe storage. The product operates at UBS Gold Network, blockchain without permission that connects coffers, liquidity providers and distributors.

To optimize efficiency, UBS used ZKSync Validium mode. It is a zero knowledge rollup solution that improves, especially scalability, by storing data outside Chain

Intelligent contracts facilitate emission of gold tokens

As part of the test concept, the bank implemented intelligent contracts on Testnet Validium to simulate UBS Gold Network. These contracts facilitated, for example, the emission of gold tokens and the processing of transactions.

This POC reflects UBS’s continuous efforts to explore how blockchain can improve its financial offers and support its broader digital active strategy. I firmly believe that the future of finances will take place Onchain, wrote Alex Gluchowski, inventor of Zksync.

Testnet has also improved privacy by restricting participants’ visibility to their transactions, maintaining verification mechanisms. It also allowed Stablecoin to integrate into Ethereum, making gold tokens purchases more economical and scalable.

Increasing institutional interest in blockchain solutions

The UBS test reflects a broader change towards the adoption of blockchain in traditional finances (Tradfi). The bank has already explored the tokenization by launching an investment fund in the Ethereum -based monetary market.

UBS digital asset leader Christoph Puhr notes that tokenized securities have great potential, but scalability, privacy and interoperability are still obstacles. He pointed out that Zksync POC showed how Layer-2 networks and zero knowledge technology can help face these challenges.

This is another great example of how UBS collaborates with technology providers to stay at the forefront of innovation. Our Poc with Zksync has shown that Layer 2 networks and ZK technology have the potential to solve this, Puhr noted.

Zksync co-inventor Alex Gluchowski echoed this feeling by pointing out that these initiatives show that the future of finances is on-chain.

According to him, zero knowledge technology would serve as a catalyst for innovation and provide a robust base for tokenized actives, which could accelerate the adoption of Web3.