<ul>
 <li>Zilliqa plans to replace its standalone blockchain model with an Ethereum Layer 2.</li>
 <li>Verified institutional wallets will gain access first, with LTIN operating the sequencer.</li>
 <li>ZIL remains the network token, and holders need not take immediate action.</li>
</ul>
Zilliqa plans to move from an independent blockchain to an Ethereum Layer 2 serving regulated financial institutions. Announced publicly on November 5, the transition follows weak adoption, tighter funding and rising security costs. The project will retain ZIL as its token, while introducing identity checks that determine which wallets can transact on the planned network.
<h2 class="wp-block-heading" id="zilliqa-plans-verified-access-and-ethereum-settlement">Zilliqa Plans Verified Access and Ethereum Settlement</h2>
The<a href="https://www.zilliqa.com/?utm_source=chatgpt.com" rel="noopener noreferrer nofollow"> project website</a> describes a network that posts transaction batches to Ethereum while restricting access to verified participants. Institutions will enter first, with individuals and other users potentially joining later.
Verification will use verifiable Legal Entity Identifiers, or vLEIs. These credentials identify a legal entity and establish who is authorized to act for it. Only wallets approved through verified credentials will transact.<a href="https://www.zilliqa.com/?utm_source=chatgpt.com" rel="noopener noreferrer nofollow">&nbsp;</a>
<figure class="wp-block-embed is-type-rich is-provider-x wp-block-embed-x">
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 <blockquote class="twitter-tweet">
 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.… <a href="https://t.co/Mt4Zm9DuYb" rel="noopener noreferrer nofollow">pic.twitter.com/Mt4Zm9DuYb</a>— Zilliqa (@zilliqa) <a href="https://x.com/zilliqa/status/2118288870060032070?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">November 5, 2026</a>
 </blockquote>
 </div>
</figure>
Zilliqa has assigned the sequencer role to the Liechtenstein Trust Integrity Network, known as LTIN. A sequencer orders transactions and groups them for settlement.
State-owned Telecom Liechtenstein holds 51% of LTIN, according to the project. LTIN is seeking accreditation as a qualified vLEI issuer; that process should not be confused with completed approval.<a href="https://www.zilliqa.com/ltin.html?utm_source=chatgpt.com" rel="noopener noreferrer nofollow">&nbsp;</a>
The proposed design combines public <a href="https://coincryptonewz.com/ethereum-bulls-target-4k-as-heatmap-signals-explosive-volatility-ahead/" rel="noopener noreferrer nofollow">Ethereum settlement</a> with restricted participation. Identity checks may support institutional requirements, but they do not establish blanket regulatory approval for every financial activity.
<h2 class="wp-block-heading" id="token-holders-await-migration-details-and-network-launch">Token Holders Await Migration Details and Network Launch</h2>
Zilliqa said its standalone network had not attracted enough usage or ecosystem growth to sustain its operating model. Recent security incidents further exposed the cost of maintaining an independent chain.
<figure class="wp-block-embed is-type-rich is-provider-x wp-block-embed-x">
 <div class="wp-block-embed__wrapper">
 <blockquote class="twitter-tweet">
 Nonce-Generation Vulnerability in the Zilliqa Ledger App: A critical vulnerability has been identified in the Zilliqa Ledger application affecting the generation of Schnorr signatures for native (non-EVM) Zilliqa transactions. The vulnerability causes signatures to be generated… <a href="https://t.co/sudV7WA3TV" rel="noopener noreferrer nofollow">https://t.co/sudV7WA3TV</a>— Zilliqa (@zilliqa) <a href="https://x.com/zilliqa/status/2079847348780536050?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">July 22, 2026</a>
 </blockquote>
 </div>
</figure>
The project has existed for roughly nine years, but its mainnet launched in January 2019. Its announcement therefore describes a strategic transition, rather than confirming that the existing blockchain has already shut down.<a href="https://www.zilliqa.com/why.html?utm_source=chatgpt.com" rel="noopener noreferrer nofollow">&nbsp;</a>
ZIL holders do not need to take immediate action. Zilliqa says it will publish technical instructions before changes affect holders, exchanges or stakers.
The migration schedule and detailed Layer 2 architecture remain outstanding. The project’s<a href="https://www.zilliqa.com/zil.html?utm_source=chatgpt.com" rel="noopener noreferrer nofollow"> token guidance</a> says any migration or swap instructions will appear on its official website first.
<pre class="wp-block-preformatted">Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.</pre>
&lt;p&gt;The post <a rel="noopener noreferrer nofollow" href="https://coincryptonewz.com/ethereum-layer-2-becomes-zilliqa-plan-for-regulated-institutions/">Ethereum Layer 2 Becomes Zilliqa Plan for Regulated Institutions</a> first appeared on <a rel="noopener noreferrer nofollow" href="https://coincryptonewz.com">Coin Crypto Newz</a>.&lt;/p&gt;

Ethereum Layer 2 Becomes Zilliqa Plan for Regulated Institutions

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