Zilliqa, Previously Backed by Polychain Capital, Announces Pivot from Standalone Layer 1 to Ethereum L2 Zilliqa announced that it will transition from a standalone Layer 1 to an Ethereum Layer 2 called the Zilliqa Institutional Layer (ZIL), targeting regulated institutions. Zilliqa stated that usage on its legacy chain was insufficient to sustain standalone operations; the new network will be secured by Ethereum for settlement, feature built-in identity and compliance mechanisms, and establish permissioned markets for verified institutional participants. Zilliqa noted that tokenholders currently do not need to take any action, with technical details to be released ahead of the transition. Founded in 2017 by a research team from the National University of Singapore (NUS), Zilliqa raised approximately $22 million across seed and ICO rounds between late 2017 and early 2018, with major backers including Polychain Capital, FBG Capital, and NGC Ventures.