The Swiss banking giant UBS said that it had completed proof of concept of its UBS gold gold offer on the Ethereum Layer-2 ZKSYNC network.
The simulation, which was carried out on a Zksync test network, is a sign of renewed interest in blockchain technology among traditional financial institutions. This is not UBS’s first experience with the blockchain. The bank had previously launched an investment fund on the money market in Tokenized, Umint, which is also built on Ethereum.
UBS gold Key4 is one of the banks of the bank that allows its Swiss customers to buy a direct complaint with physical gold. “It allows fractional investments in gold with real -time prices, 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 private blockchain of the bank, the UBS Gold Network, but the team was looking for ways to develop its project while preserving its privacy. “They came to the conclusion that only zero knowledge made sense for them, and they therefore really wanted to put this into practice for a product they already have live and what it might look if they use validium to The place “, Pearl Imbach, a main business development director at Matter Labs, the main developer firm behind Zksync, told Coindesk in an interview.
ZKSYNC is a zero knowledge roll, a type of layer of the layer of the layer A validum is a different type of layer-2, similar to that of a roller, but stores the data of these off-chain transactions.
The test transaction may point out that UBS could further examine the use of layer 2 technologies to supply some of its activities. However, the bank did not say if they would come out with their own layer 2, and Imbach from Matter Labs told Coindesk that a Rollup may not be adapted to them. “Is it the right product [for UBS]? Perhaps not, but that’s something we are talking about openly and thinking about what could be a good use for them, “Imbach told Coindesk.
This is not the first time that a banking giant has used Zksync technology for its own products. Deutsche Bank said in December that it also planned to build a layer-2 with Zksync technology, indicating how blockchain technology can coexist or even better operate products from traditional financial institutes.
“What we offer now, with intimacy at the top [of the blockchain] is something that is super interesting, and we are making more and more use cases now, ”Imbach told Coindesk.
Read more: The Deutsche Bank L2 blockchain is “public and authorized”, explains the technological partner
