Union Bank of Switzerland (UBS), the largest bank in Switzerland, is currently conducting testing on Ethereum’s layer-2 scaling solution, ZKsync (ZK), for a tokenized gold product.

According to a recent announcement on the social media platform X, the developers behind ZKsync revealed that UBS is exploring the use of blockchain technology to improve the functionality of its tokenized gold investment products for global use.

The product being tested, UBS Key4 Gold, enables users to buy and sell units of gold on the blockchain. The developers have now initiated testing on the layer-2 network.

UBS’s goal with this project is to address scalability, privacy, and interoperability for global expansion. The bank aims to modernize digital gold investments on ZKsync by utilizing a proof of concept (PoC) for UBS Gold, which involved testing ZKsync Validium.

UBS Key4 Gold offers fractional gold investments for retail clients and includes features such as 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.

ZKsync has reported that the deployment of UBS’s smart contracts on its testnet Validium was successful.

Alex Gluchowski, co-founder of ZKsync, stated, “This proof of concept demonstrates UBS’s ongoing commitment to exploring the potential of blockchain technology to enhance their financial offerings and support their broader digital asset strategy. I firmly believe that the future of finance will take place on-chain, and ZK technology will be the driving force behind this growth. This proof of concept reaffirms that ZKsync is the perfect platform for tokenized assets, building Web3 without compromise. We are excited to play a significant role in the continued evolution of this space.”

At the time of writing, ZK is trading at $0.142, representing a 6.8% decrease for the day.

Don’t miss any updates! Subscribe to receive email alerts directly to your inbox.

Check the latest price action.

Follow us on X, Facebook, and Telegram.

Surf The Daily Hodl Mix.

Generated Image: Midjourney