Over the past few weeks, our primary focus has been clear: Strengthening Zilliqa’s core infrastructure while continuing to advance the strategic initiatives outlined earlier.

At the center of this effort is X-Bridge - a critical component of Zilliqa’s cross-chain strategy and a foundational layer for future ecosystem integrations. As digital asset markets evolve, resilient and interoperable infrastructure is no longer optional - it is essential.

Alongside this, we continue to make steady progress across several long-term initiatives, including:

• On-chain identity (vLEI)
• Regulatory-ready environments
• Stablecoin flow infrastructure
• Cross-ecosystem partnerships

While progress across these verticals varies - particularly where institutional adoption and regulatory alignment are involved - the underlying groundwork continues to move forward with intent.

Updates Across Key Verticals

Network Development

We continue to prioritise the enhancement of X-Bridge, with ongoing improvements focused on code hardening, automation, and deeper integration within the network.

A key milestone in this transition is the replacement of DeBridge-based USDC with zUSDC via X-Bridge. This shift reduces reliance on external infrastructure while strengthening the long-term value of Zilliqa’s native bridging layer.

• Liquidity for zUSDC is now live via PlunderSwap
• Users are encouraged to bridge existing DeBridge-based USDC off-chain before 31 March 2026 and bridge back zUSDC via X-Bridge

In parallel, we achieved an important proof-of-concept with LTIN (backed by Telecom Liechtenstein), successfully running a fully functional Zilliqa DevNet on LTIN infrastructure.

Next steps include:

• Further DevNet hardening
• API node integration

Cross-Chain Utility

Development on X-Bridge continues with a focus on robustness, scalability, and interoperability.

Recent progress includes:

• Codebase restructuring and optimisation
• Restoration of fully automated transaction processing
• Preparation for additional network integrations

We have also initiated engagement with external audit providers to further strengthen trust, transparency, and security around the bridging infrastructure.

In parallel, discussions are underway with partner networks to explore cross-ecosystem utility, beginning with DeFi integrations.

On-Chain Identity & vLEI

Progress continues on the Qualified vLEI Issuer (QVI) registration process with GLEIF, although timelines have been longer than initially anticipated due to the complexity of Institutional alignment.

This initiative remains a cornerstone of the joint strategy between Zilliqa and LTIN.

Institutional adoption requires seamless compatibility with:

• Enterprise-grade tooling
• Secure key management systems

As a result, deeper architectural discussions are ongoing with GLEIF and internal teams to define the optimal implementation approach.

While the architecture is still being finalised, our conviction remains strong: vLEI-based identity infrastructure represents a critical missing layer for Institutional blockchain adoption.

Global Stablecoin Flow Unification

Building regulatory-ready, auditable stablecoin flows is essential for enabling Real-world financial use cases on-chain.

This initiative is closely tied to Identity infrastructure and introduces new design considerations, including:

• Universal interoperability across payment systems
• Policy-driven transfer frameworks

A key concept under exploration is the ability for recipients to define inbound transfer rules at the protocol level, enabling:

• Greater control
• Compliance alignment
• Risk management

While one payment industry partner has postponed deeper discussions until April due to internal priorities, engagement remains active and interest unchanged.

A comprehensive review of the technical architecture and system design is currently underway.

Regulatory-Ready Environments

Progress in this vertical remains tightly coupled with advancements in identity infrastructure.

We have initiated early discussions with Regulated Asset Managers to explore the development of:

• On-chain investment funds (Money market funds)
• Compliant financial products

While regulatory and legal considerations remain complex, this represents a high-potential medium- to long-term opportunity aligned with broader market trends.

More updates to follow as these initiatives continue to evolve. Stay tuned.