- UBS has completed a proof-of-concept (PoC) for its Key4 Gold program using ZKsync, an Ethereum layer-2 scaling solution, to improve scalability, privacy and interoperability for potential global expansion.
- This move aligns with UBS’s broader digital asset strategy, following its launch of uMint, a tokenised money market fund on Ethereum
- Key4 Gold may shift from UBS’s private blockchain to ZKsync for enhanced transaction throughput and off-chain data capabilities.
UBS, one of Switzerland’s largest corporations, has completed a proof-of-concept for its Key4 Gold offering on ZKsync (ZK), a leading Ethereum layer-2 scaling solution.
Through ZKsync, UBS aims to enhance the scalability, privacy and interoperability of Key4 Gold, positioning it for potential global expansion.
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According to Alex Gluchowski, ZKsync’s founder, zero-knowledge technology will be the “catalyst for growth” for the future of on-chain finance:
This PoC reflects UBS’ continued efforts to explore how blockchain can enhance its financial offerings and support its broader digital asset strategy. I firmly believe that the future of finance will take place onchain and ZK technology will be the catalyst for growth. This PoC is a testament to the fact that ZKsync is the ideal home for tokenized assets, building Web3 without compromise.
Alex Gluchowski, ZKsync’s founderUBS Ventures Into Blockchain
Key4 Gold, one of UBS’s offerings, allows Swiss clients to purchase direct claims to physical gold. It supports fractional gold investments with real-time pricing, deep liquidity, secure physical storage, and even the option for physical delivery.
The project was originally built on the bank’s UBS Gold Network, which is a permissioned (private) blockchain that connected vaults with liquidity providers and enterprise-grade distributors. The test could mean a potential transition to ZKsync in order to improve the platform’s capabilities by enabling higher transaction throughput, greater privacy and seamless interoperability through off-chain data storage.
Back in November, UBS launched uMint, a tokenised money market investment fund built on Ethereum.
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ZKsync is a zero-knowledge rollup designed to enhance blockchain transaction speed and reduce costs.
It’s one of the largest scaling solutions for Ethereum with a total value locked (TVL) of around US$992M (AU$1.6B), according to data from L2Beat. While similar to Validium, rollups store data on-chain, whereas Validium keeps it off-chain, offering different trade-offs between scalability and data availability.
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