Nethermind and UBS have successfully completed two proof-of-concept projects demonstrating that regulated financial institutions can implement compliance controls on Ethereum's public network. Conducted on the Ethereum Sepolia testnet, the projects involved creating a node capable of enforcing custom compliance rules on transactions and a system to route approved transaction bundles to designated block builders. These developments show that robust compliance can be achieved without altering the Ethereum protocol, addressing institutional regulatory needs on public blockchains. No real funds were used in these tests.
Nethermind and UBS Develop Ethereum Compliance Solutions for Institutions
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