Union Bank of Switzerland (UBS), the largest bank in Switzerland, is conducting a trial of a tokenized gold product on the Ethereum (ETH) layer-2 scaling solution called ZKsync (ZK).

According to a recent discussion on the social media platform X, the developers of ZKsync have revealed that UBS is testing its tokenized gold investment products on the blockchain in order to enhance global functionality.

The product, called UBS Key4 Gold, allows users to buy and sell units of gold on the blockchain. It is currently being tested on the layer-2 network, as stated by the developers.

The developers of ZKsync have stated that UBS successfully deployed smart contracts on its testnet called Validium.

According to ZKsync co-founder Alex Gluchowski,

“This trial demonstrates UBS’ ongoing efforts to explore how blockchain technology can improve its financial offerings and support its broader digital asset strategy. I firmly believe that the future of finance will be conducted on-chain, and ZK technology will be the catalyst for growth.

This trial is proof that ZKsync is the ideal platform for tokenized assets, building Web3 without compromise. We are excited to play an integral role in the continuous evolution of this space.”

At the time of writing, the price of ZK is trading at $0.142, representing a 6.8% decrease for the day.