Swiss banking giant UBS is piloting blockchain technology to enhance digital gold trading, leveraging the Ethereum layer-2 network ZKsync Validium to improve security, scalability, and accessibility for retail investors.
UBS Key4 Gold Moves Onchain
As part of its proof-of-concept (PoC), UBS has integrated its fractional gold investment product, UBS Key4 Gold, with ZKsync Validium. The bank’s goal is to improve privacy, interoperability, and transaction efficiency while preparing for a potential global rollout.
Blockchain Expansion in Traditional Finance
UBS initially developed Key4 Gold on its UBS Gold Network, a permissioned blockchain connecting vaults, liquidity providers, and distributors. The transition to ZKsync’s Ethereum-based infrastructure marks a step toward broader adoption of onchain financial products.
Alex Gluchowski, the inventor of ZKsync, commented on the initiative, stating, “I firmly believe that the future of finance will take place onchain, and ZK technology will be the catalyst for growth.”
This move underscores UBS’s ongoing blockchain adoption strategy, positioning the bank among traditional financial institutions exploring decentralized solutions.
