Zilliqa Ends Nine-Year Layer 1 Run With Ethereum-Based Institutional Pivot

Zilliqa will end its nine-year run as an independent blockchain and move to an Ethereum Layer 2 network for regulated financial institutions. Announced November 5, the shift follows weak adoption, declining funding and rising security costs.

The Zilliqa Institutional Layer (ZIL) will use Ethereum for security and add identity checks. The project will retain its existing token.

We know it's not great. For nine years we built and ran our own Layer 1. It hasn't worked.

We're not giving up. Here's the first of many next steps in a new direction:

Zilliqa is becoming the Zilliqa Institutional Layer (ZIL): an Ethereum Layer 2 for regulated institutions.… pic.twitter.com/Mt4Zm9DuYb

— Zilliqa (@zilliqa) November 5, 2026

Zilliqa Targets Institutional Trading

Zilliqa said its standalone network failed to attract enough users to remain viable. Lower funding and liquidity also m…

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