The Swiss bank giant UBS said he completed a proof of concept of his gold offer Key4 on the Ethereum Layer-2 Zksync Network.
The simulation, which was carried out in a ZKSYNC test network, is a sign of renewed interest in blockchain technology among traditional financial institutions. This is not the first UBS experiment with Blockchain. The bank previously launched an investment fund of the Tokenized Monetary Market, UMINT, which is also based on Ethereum.
Key4 Gold of UBS is one of the bank’s offers that allows its Swiss customers to buy a direct physical gold claim. “It allows fractional gold investments with real -time prices, deep liquidity, safe physical storage and optional physical delivery,” the team said in a press release shared with Coindesk.
The project already exists in the Bank’s private block chain, Gold UBS Network, but the team was looking for ways to climb their project while preserving its privacy. “They concluded that only zero knowledge made sense for them, so they really wanted Senior Business Development Manager of Matter Labs, the main developer firm behind Zksync, told Coindesk in an interview.
ZKSYNC is a zero knowledge roll, a type of layer 2 scale system that aims to increase the speed of blockchain transactions and reduce its rates, by using zero knowledge cryptography. A Validum is a different type of Capa-2, similar to that of a roll, but stores the data of those transactions outside the chain.
The test transaction may indicate that UBS could be looking more closely by the use of layer 2 technologies to feed some of its activities. However, the bank did not say if they would go out with their own Capa-2, and Imbach of Matter Labs told Coindesk that a curled up may not be adequate for them. “Is this the right product [for UBS]? Perhaps not, but it is something we are only talking about openly and thinking about what could really be a good case for them, “Imbach told Coindesk.
This is not the first time that a bank giant uses Zksync technology for its own products. Deutsche Bank said in December that he was also planning to build a layer 2 with Zksync technology, indicating how Blockchain technology can coexist or even make the products of traditional financial institutes work better.
“What we are offering now, with privacy at the top [of the blockchain] It is something that is super interesting, and we are doing more and more of these cases of use now, ”Imbach told Coindesk.
Read more: L2 Blockchain L2 of Deutsche Bank to be “public and permission,” says the technological partner
