- ZKsync revealed that UBS is piloting a brand new blockchain-based gold funding product.
- The UBS Key4 Gold leverages ZKsync for scalability, privateness, and interoperability.
The Union Financial institution of Switzerland (UBS) is testing a brand new strategy to harness the benefits of blockchain expertise. In line with ZKsync, Switzerland’s largest financial institution is leveraging the tech to modernize digital gold investments for retail traders.
Introducing UBS Key4 Gold
The Swiss financial institution with over $5.7 trillion belongings below administration (AUM) has already accomplished a proof-of-concept (PoC) for the deliberate UBS Key4 Gold providing. Now in its experimental stage, the gold funding product makes use of ZKsync Validium, an Ethereum Layer-2 (L2) community.
The UBS Gold Community underpins the UBS Key4 Gold. The permissioned blockchain connects vaults, liquidity suppliers, and distributors. It unlocks real-time pricing, deep liquidity, safe bodily storage, and elective supply for the product. ZKsync Validium enhances the platform in addressing scalability, privateness, and interoperability for the retail-focused product’s world enlargement.
Alex Gluchowski, Sksync’s co-inventor, stated that the venture underscores UBS’ efforts to discover extra methods to spice up its monetary choices and digital asset technique through blockchain. As well as, he believes that ZK expertise can be instrumental within the monetary revolution occurring on-chain.
“This PoC is a testomony to the truth that ZKsync is the best residence for tokenized belongings, constructing Web3 with out compromise,” Gluchowski emphasised. “We’re excited to play an integral function within the continued evolution of the house.”
In the meantime, Christoph Puhr, Digital Belongings Lead at UBS Group, defined that the brand new collaboration highlights the Swiss financial institution’s drive to stay on the forefront of monetary innovation.
“While tokenized securities maintain a whole lot of potential to deliver new options to our purchasers, scalability, privateness, and interoperability stay key challenges to beat,” said Puhr. “Our PoC with ZKsync demonstrated that Layer 2 networks and ZK expertise maintain the potential to resolve these.”
A Comply with-As much as UBS Cash Market Funding
The UBS Key4 Gold PoC comes sizzling on the heels of the launch of the UBS USD Cash Market Funding Fund Token (uMINT) final November. The tokenized funding fund additionally makes use of Ethereum’s distributed ledger expertise (DLT).
The platform permits prospects entry to institutional-grade money administration options inside high-quality cash market devices. It’s primarily based on a conservative and risk-managed infrastructure.
This system leverages private and non-private blockchains to boost its fund issuance and distribution. Moreover, the cash market funding fund advantages from the insights UBS gleaned as an lively business accomplice of the Financial Authority of Singapore’s (MAS) Challenge Guardian initiative since 2023.