DCG-backed Horizen transitions ZEN to ERC-20 token on Base for compliant privacy L3 appchain

The Horizen blockchain has transitioned its native ZEN from its Layer 1 blockchain to a token on the Base blockchain. The token migration is part of Horizen 2.0 being deployed as a Layer 3 appchain on Base.The migration has seen ZEN become a standard ERC-20 token while simultaneously launching a privacy-first appchain. The maximum supply of ZEN will remain capped at 21 million.This marks the first step in Horizen's broader ecosystem relaunch on Base as a privacy-first appchain, the project noted.Previously, exchange Coinbase announced in an X post that it will automatically convert existing ZEN tokens from the Horizen mainchain to their ERC-20 equivalents on Base.The Horizen blockchain has undergone significant evolution over the years. It began as ZenCash, launched in May 2017 as a privacy-centric coin in competition with Monero and ZCash. Its native cryptocurrency, ZEN, was a mineable Proof-of-Work (PoW) coin used for transaction fees within the ecosystem.In late 2018, ZenCash rebranded as Horizen, accompanied by the introduction of sidechains and a renewed focus on supporting decentralized applications. In 2023, the project updated its privacy status in response to a global trend, where many privacy-focused cryptocurrencies faced regulatory scrutiny and delistings.Now the project is pivoting to a privacy-focused dapp on Base, powered by zero-knowledge proofs and "built for modular privacy and sustainable onchain utility," the project said.Horizen Labs raised $4 million in a 2019 seed round led by Digital Currency Group (DCG). In 2021, it secured an additional $7 million in a round backed by DCG, Kenetic Capital, and others.Grayscale, a DCG subsidiary, opened a Horizen Trust for accredited investors. This trust provides institutional investors exposure to ZEN without direct crypto ownership.According to The Block's price page, ZEN's market cap is about $134 million, with the token trading at around $8.4 — a 12% decrease over the past 24 hours.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.