UBS and Nethermind demonstrate Ethereum-based compliance solutions for regulated financial institutions on the Sepolia test network.
UBS Group and blockchain research firm Nethermind completed two proofs of concept showing Ethereum can meet institutional compliance and operational standards. The tests, conducted on the Sepolia test network, focused on enforcing customizable compliance rules at the node level and routing approved transactions to select builders without altering Ethereum’s core protocol.
The collaboration aimed to bridge decentralized public networks with institutional-grade infrastructure, addressing risk management and regulatory requirements. Prior efforts in this space have struggled to balance compliance with blockchain neutrality, but this approach maintains compatibility with the broader Ethereum ecosystem.
UBS and Nethermind plan to expand the partnership, exploring further applications for digital asset adoption within global financial regulations. The initiative highlights growing institutional interest in blockchain infrastructure while adhering to strict compliance frameworks.