One of the world’s largest banks just proved it can play by its own rules on Ethereum, without breaking anyone else’s.
UBS and Nethermind, a core Ethereum client developer, announced the successful completion of two joint proofs of concept showing that public Ethereum infrastructure can meet the operational and compliance requirements of regulated financial institutions. The tests were conducted on Ethereum’s Sepolia testnet, meaning no real money changed hands, but the implications are anything but theoretical.
What they actually built
The two PoCs tackled different but complementary problems that banks face when they consider touching public blockchains.
The first proof of concept focused on implementing customizable compliance and risk controls at the node level. In English: UBS tested whether a bank could configure its own Ethereum node to only interact with pre-approved addresses and block certain smart contract interactions.
