Zilliqa is transitioning from an independent Layer 1 blockchain to an Ethereum Layer 2 network. The new infrastructure, branded as the Zilliqa Institutional Layer, is designed exclusively for regulated institutions and will operate as a permissioned system.
The network will restrict transactions to verified participants only. Identity verification will be managed in collaboration with the Liechtenstein Trust Integrity Network (LTIN), utilizing legal identifier verification and vLEI credentials. Zilliqa holds a financial stake in LTIN, which was deepened in July 2026.
The project cited several factors for this strategic shift, including unsustainable economic models, insufficient adoption, and security risks associated with standalone Layer 1 chains. The transition was announced between November 4–5, 2026.
Zilliqa launched its original mainnet in January 2019, focusing on sharding technology. A major 2026 upgrade previously introduced proof-of-stake and Ethereum Virtual Machine compatibility. The current ZIL token remains unaffected by these structural changes.
