Swiss bank UBS tests blockchain for digital gold investments on ZKsync
UBS, Switzerland’s largest bank, is testing blockchain technology to enhance digital gold investments for retail investors through its product, UBS Key4 Gold. The proof-of-concept was completed on the ZKsync Validium, an Ethereum layer-2 network, aiming to improve scalability, privacy, and interoperability. UBS Key4 Gold was initially developed on the UBS Gold Network, which connects vaults and liquidity providers. Running on ZKsync enhances privacy and throughput due to off-chain data storage. This initiative follows recent trends that push Ether into traditional finance. ZKsync has ambitious goals for 2025, looking to process 10,000 transactions per second while minimizing fees. The platform uses zero-knowledge proofs to enhance the scalability and security of the Ethereum mainnet. Privacy-preserving technologies are expected to facilitate better institutional adoption, with experts noting that institutions require a comfortable entry experience similar to traditional finance. Such technologies could potentially drive significant investment into the crypto sector, culminating in greater liquidity and more diversified institutional participation.
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