UBS Bank Plans Gold Trading on Ethereum
UBS a global bank that oversees $6 trillion in assets, is investigating how blockchain technology can simplify gold investments, according to ZKSync
The main goal is to enable direct physical gold purchases for the bank’s Swiss clients using a blockchain-based system while guaranteeing interoperability, scalability, and privacy.
UBS Key4 Gold helps retail investors purchase fractional gold shares with real-time pricing, deep liquidity, and secure storage. The product runs on a permissionless blockchain called the UBS Gold Network, which links distributors, liquidity providers, and vaults.
UBS made use of ZKSync’s Validium mode to optimize performance. It is a roll-up solution with zero knowledge that improves scalability through off-chain data storage.
The bank implemented smart contracts on the Validium Testnet to mimic the UBS Gold Network as part of the proof-of-concept.
These agreements made it easier to issue and process gold tokens. “UBS’ ongoing efforts to investigate how blockchain can improve its financial offerings and support its larger digital asset strategy are reflected in this Proof of Concept.”. Alex Gluchowski, the creator of ZKsync, wrote, “I am convinced that the financial industry’s future will occur on-chain.”.
the Testnet further improved privacy by limiting participants’ access to their transactions while preserving verification procedures, . It is also possible for stablecoin and Ethereum to combine, increasing the scalability and affordability of buying gold tokens.
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