Zilliqa announces transition to Ethereum L2 for regulated institutions, ZIL token remains unchanged.

Public blockchain project Zilliqa announced that its independent Layer 1 network, which has operated for nine years, has failed to achieve sustainable scale. The project will pivot to building the Zilliqa Institutional Layer, an Ethereum Layer 2 designed for regulated institutions. The network will leverage Ethereum for settlement and security, integrate vLEI-based identity and compliance features, and establish a permissioned market for verified institutional transactions—prioritizing institutional users before expanding to individuals and agents at a later stage. The Liechtenstein government-backed trust network LTIN will operate the sequencer and serve as a qualified vLEI issuer. Officials noted that Zilliqa will retain its existing partners, community, and native token ZIL. Token holders do not need to take any action at present; any swaps, migrations, or claims will first be announced via official channels.