Zilliqa Pivots to the Zilliqa Institutional Layer on Ethereum
The new network keeps the ZIL token, verifies every participant with a vLEI identity and settles all transactions on Ethereum mainnet.
Key Takeaways
- Zilliqa announced on November 5, 2026 that it is pivoting from its own Layer 1 to an Ethereum Layer 2 called the Zilliqa Institutional Layer.
- Only wallets whitelisted through a verified vLEI identity can transact at launch, starting with banks, asset managers, funds and issuers.
- ZIL remains the network's single token, and holders do not need to act until migration details are published.
Zilliqa (ZIL) is leaving its own Layer 1 to become an Ethereum Layer 2 called the Zilliqa Institutional Layer, the project announced on November 5, 2026. The network will settle on Ethereum and let only verified institutions transact at launch.
Why Zilliqa Is Moving to an Ethereum Layer 2
Zilliqa has built and run its own blockchain for nine years, from sharding research to Zilliqa 2.0. The project says its next chapter builds on Ethereum for security, liquidity and institutional reach, according to the Zilliqa announcement. Reporting on the pivot says usage on the legacy chain was not enough to sustain it as a standalone network.
The pitch is identity. Zilliqa argues that execution on blockchain is largely solved, while knowing who is on the other side of a trade is not. Around 2 million legal entities already hold a Legal Entity Identifier, and rules such as the EU's MiCAR increasingly expect verified counterparties. The pivot adds Zilliqa to the list of layer 2 networks settling on Ethereum and pulls the project deeper into the Ethereum ecosystem.
How the Zilliqa Institutional Layer Works
Every participant is verified before the first trade. The network uses the vLEI, the verifiable form of the Legal Entity Identifier standard overseen by GLEIF, to prove which legal entity is acting and which person is authorized to act for it. With LTIN, the Liechtenstein Trust Integrity Network, which is becoming a qualified vLEI issuer, Zilliqa will issue vLEIs directly on the Layer 2.
Access is permissioned by identity rather than by a private network. Only wallets whitelisted through a verified vLEI can transact at the start, covering banks, asset managers, funds and issuers. Everything else works like a standard Ethereum Layer 2: public, auditable and settled on Ethereum mainnet, with transaction batches posted to Ethereum. Zilliqa plans to open participation to other users at a later stage.
What Happens to the ZIL Token
ZIL remains the network's single token. Zilliqa says tokenholders do not need to take action for now, and that migration details will come later. The team has not published a final launch date and is currently recruiting the first institutions for the network.
Traders can follow the move on the Zilliqa price chart as migration details land.
Frequently Asked Questions
What Is the Zilliqa Institutional Layer?
The Zilliqa Institutional Layer is Zilliqa's new Ethereum Layer 2, announced on November 5, 2026. At launch it is a permissioned network where only verified institutions can transact.
Is Zilliqa Leaving Its Own Blockchain?
Yes. After nine years of running its own Layer 1, Zilliqa is moving to an Ethereum Layer 2. Settlement and security will come from Ethereum mainnet.
What Happens to the ZIL Token?
ZIL stays as the network's single token. Zilliqa says holders do not need to take action now; migration steps will be published later.
Who Can Use the Zilliqa Institutional Layer?
At launch, only banks, asset managers, funds and issuers with a verified vLEI identity can transact. Zilliqa plans to open access to other participants later.
When Does the Zilliqa Institutional Layer Go Live?
Zilliqa announced the pivot on November 5, 2026 but has not published a final launch date. The team is currently recruiting the first institutions.
Sources
- Zilliqa Institutional Layer: official announcement · Zilliqa
- Why Zilliqa is making this move · Zilliqa
Prices and market data: Coinranking.
