Swiss banking giant UBS said that it completed a proof-of-concept of its UBS Key4 Gold offering on the Ethereum layer-2 network ZKsync.

The simulation, which was conducted on a ZKsync test network, is a sign of renewed interest in blockchain technology among traditional financial institutions. This isn’t UBS’ first experiment with blockchain. The bank previously launched a tokenized money market investment fund, uMint, which is also built on Ethereum.

UBS’ Key4 Gold is one of the bank’s offerings that lets its Swiss clients purchase a direct claim to physical gold. “It allows for fractional gold investments with real-time pricing, deep liquidity, secure physical storage, and optional physical delivery,” the team said in a press release shared with CoinDesk.

The project already exists on the bank’s private blockchain, the UBS Gold Network, but the team was looking for ways to scale its project while preserving its privacy. “They came to the conclusion that only zero-knowledge made sense for them, and so they wanted to really put this in practice for a product that they already have live and what this could look like if they use the validium instead,” Pearl Imbach, a Senior Business Developm

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Author: Margaux Nijkerk