Swiss bank giant UBS said it ended a proof-of-concept of its UBS Key4 Gold offering at Ethereum Layer-2 network Zksync.

The simulation performed on a ZKSync test network is a sign of renewed interest in blockchain technology among traditional financial institutions. This is not UBS ‘first experiment with blockchain. The bank previously launched a tokenized money market investment fund, Umint, which is also built at Ethereum.

UBS ‘Key4 Gold is one of the bank’s offerings that lets its Swiss clients buy a direct claim for physical gold. “It allows for fractional gold investments with pricing of real time, deep liquidity, safe physical storage and optional physical delivery,” the team said in a press release shared with Coindesk.

The project is already available on the bank’s private blockchain, UBS Gold Network, but the team was looking for ways to scale its project while retaining its privacy. “They came to the conclusion that only zero-knowledge made sense to them, and therefore they would really put this into practice for a product that they already have live and what it might look like if they use valid instead, “Pearl Imbach, a senior business development manager at Matter Labs, the largest developer company behind Zksync, Coindesk told in an interview.

Zksync is a zero-knowledge rollup, a type of layer 2 scaling system aimed at increasing the speed of blockchain transactions and reducing their fees using zero-knowledge cryptography. One validum is another type of layer-2 that is similar to it for a merger but stores the data about these transactions off-chain.

The test transaction can signal that UBS could take a closer look at using Layer-2 technologies to run some of its activities. However, the bank did not say if they would come out with their own Layer-2, and Matter Labs’ Imbach told Coindesk that a merger may not be the right fit for them. “Is this the right product [for UBS]? Maybe not, but it’s something we just talk about openly and think about what could actually be a good use of use for them, ”IMBACH COINDKEK said.

This is not the first time a bank giant has used ZKSync’s technology for its own products. Deutsche Bank said in December that it also planned to build a Layer-2 with ZKSync’s technology, indicating how blockchain technology can exist together or even make traditional financial institutes work better.

“What we are now offering with privacy on top [of the blockchain] Is something that is super interesting and we are doing more and more of these use cases now, ”IMBACH told Coindesk.

Read more: Deutsche Banks L2 Blockchain to be ‘public and allowed’, says Tech Partner