Zilliqa Pivots to Ethereum Layer 2 Targeting Regulated Institutions

Key Facts

Zilliqa announced a strategic pivot to become an Ethereum Layer 2 network specifically targeting regulated financial institutions. Crypto Briefing reported that the project is transitioning its architecture from an independent Layer 1 blockchain to a settlement layer on Ethereum to meet the compliance needs of institutional users.

The move aims to leverage Ethereum's security and liquidity while providing a regulatory-friendly environment where only verified participants can process transactions. Zilliqa indicated that the shift addresses challenges faced by standalone Layer 1 blockchains, including unsustainable economic models and rising security risks.