Zilliqa announced it would transition to a new network for institutions on Ethereum, saying activity on its existing network was insufficient to sustain independent operations.
According to a statement reported by Wu Blockchain, the project plans to build an Ethereum-based layer-2 network instead of maintaining its own independent blockchain. The new network, called Zilliqa Institutional Layer (ZIL), will target regulated institutions.
There was not enough usage to sustain its own network
Zilliqa cited insufficient use of its legacy network as the reason for the change in direction. Under the new model, the project plans to rely on Ethereum’s security for transaction settlement.
This is a more substantial change than simply adding a feature to the existing network: The project aims to move from an independent blockchain model to a structure that runs on Ethereum and focuses on institutional needs.
New markets will be open to verified institutions
The announced design will include identity verification and regulatory compliance mechanisms. The goal is to create permissioned markets where only verified institutional participants can trade.
Zilliqa said that token holders do not need to take any action at this stage. Technical details of the transition will be shared before implementation.
A new chapter for a project founded in 2017
Zilliqa was founded in 2017 by a research team from the National University of Singapore. The project raised approximately $22 million in seed funding and initial token offering rounds between late 2017 and early 2018.
Its early backers include Polychain Capital, FBG Capital, and NGC Ventures. Following this history, the new announcement outlines a transition plan that will reshape both the project’s technical infrastructure and its target user base.
Not investment advice.
