UBS has announced the adoption of ZKsync technology to improve efficiency and security in gold trading, marking a milestone in the integration of blockchain into traditional markets.
The Swiss bank is using ZKsync, a Layer 2 scalability solution on Ethereum, to transform digital gold trading. The initiative, which is primarily aimed at attracting retail investors, is reported to improve efficiency, security and accessibility in digital gold transactions, helping to consolidate its position as a pioneer in financial innovation.
UBS is launching its Key4 Gold system, which allows clients to buy fractional shares of physical gold directly through blockchain. The launch of this system is a clear example of UBS’ commitment to the adoption of cutting-edge technologies, such as blockchain.
Initially, Key4 Gold was developed on the permissioned UBS Gold Network. However, it now benefits from the capabilities of ZKsync Validium, which is a solution that allows data storage off the main chain, while maintaining a high level of security and privacy. With this integration, UBS aims to simplify access to digital gold, making it more attractive to a wider and more diverse audience.
ZKsync Validium: Key to scalability and security
The implementation of ZKsync Validium is a key component of UBS’ strategy to transform digital gold trading. This Layer 2 scalability solution enables UBS to overcome the limitations of the Ethereum mainnet, processing a larger number of transactions at a lower cost. ZKsync Validium uses Zero-Knowledge Proofs to verify the validity of transactions off-chain, reducing the load on Ethereum and increasing transaction speed.
UBS’ decision to adopt this technology is based on the numerous advantages it offers. In addition to improved scalability, ZKsync Validium offers increased security compared to other Layer 2 scalability solutions as it stores transaction data off-chain, reducing the risk of congestion and attacks on the Ethereum network.
ZKsync also offers enhanced privacy, restricting transaction visibility to only the involved participants, increasing investor confidence and security. At the same time, zero-knowledge proofs ensure that all transactions are verifiable and secure, maintaining the integrity and transparency of the system. This combination of scalability and security is critical to ensuring investor confidence in digital gold trading and encouraging greater adoption of blockchain technology in the financial sector.
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Greater entry for retail investors
For retail investors, UBS’ adoption of ZKsync represents a unique opportunity to access the digital gold market in an easier, safer and more efficient way.
Powered by ZKsync, UBS Key4 Gold allows investors to purchase fractional shares of physical gold directly from their mobile devices, removing traditional barriers associated with investing in the precious metal. This simplified accessibility also allows retail investors to participate in the digital gold market with smaller amounts and without the need for costly intermediaries.
Furthermore, the security and transparency provided by ZKsync Validium gives retail investors greater confidence in trading digital gold. The decentralized and immutable nature of blockchain technology ensures that all transactions are secure and verifiable, reducing the risk of fraud and manipulation. Therefore, UBS’ adoption of ZKsync has the potential to democratize access to the digital gold market, attracting a new generation of investors and transforming the way this traditional asset is traded.
BUY ETHEREUMFinally, it is important to note that UBS is not the only bank exploring the possibilities offered by blockchain technology. Other major financial institutions, such as JPMorgan, Citi and Deutsche Bank, are investing in asset tokenization, financial infrastructure and advanced digital services, in their quest for greater innovation in the financial products and services they offer.
La ZKsync Adoption by UBS is an important milestone in the evolution of the digital gold market, allowing it to take advantage of the scalability, security and interoperability capabilities of the blockchain.
