Swiss Bank UBS Explores ZKsync for Blockchain Gold Investments

• UBS integrates ZKsync Validium to enhance digital gold transactions with speed and privacy.
• ZKsync aims for 10,000 TPS and $0.0001 fees, boosting Ethereums scalability for institutions.
• Privacy tech like FHE could unlock $1 trillion in capital by improving blockchain adoption.

UBS, Switzerlands largest bank, is using blockchain technology for its digital gold investment platform. The bank has completed a proof-of-concept for UBS Key4 Gold on the Ethereum layer-2 network ZKsync Validium. This move aims to enhance transaction speed, privacy, and scalability for retail investors.

UBS Expands Blockchain Adoption with ZKsync Validium

UBS Key4 Gold was initially built on UBS Gold Network, a permissioned blockchain system. This network connects vaults, liquidity providers, and distributors for efficient transactions. The shift to ZKsync Validium improves scalability while maintaining strong privacy and security.

ZKsync Validium allows off chain data storage, reducing transaction congestion on Ethereums main network. The solution also ensures interoperability between different financial systems. By adopting this technology, UBS aims to expand its digital gold services globally.

ZKsync Targets 10,000 TPS and Lower Fees

ZKsync has set a target to reach 10,000 transactions per second (TPS) speed. ZK-Proofs in the Ethereum layer-2 network architecture significantly improve both system security and potential scalability levels. The adoption of blockchain technology by financial institutions would be enhanced if transaction fees were lowered.

ZKsyncs 2025 roadmap aims to minimize costs and achieve rapid transaction speeds. The system seeks to reduce its transaction fee levels to $0.0001 per transaction. These advancements could increase adoption for Ethereum-based financial products.

Privacy Technology Could Drive Blockchain Adoption

Privacy remains a concern for institutions interested in blockchain technology. Many financial firms hesitate due to the transparency of public blockchains. Privacy-preserving solutions could attract more institutional investors to the crypto space.

Fully homomorphic encryption (FHE) allows data processing without revealing sensitive information. This innovation could help financial institutions integrate blockchain into their operations. Experts believe privacy solutions could unlock $1 trillion in new capital.

UBS and ZKsync Push Institutional Blockchain Growth

UBS remains focused on blockchains adoption to refine the modern financial landscape. The bank exhibits its dedication to digital asset innovation through its recent venture. The investment platform from UBS benefits from ZKsync technology to achieve greater operational quality and improved scalability.

The growing adoption of blockchain in traditional finance is a significant trend. With improved privacy and security features, more institutions may enter the blockchain space. UBS and ZKsyncs collaboration could accelerate institutional adoption in the coming years.