Previous analyses have outlined the core on-chain challenges institutions face: the “transparency problem” of public blockchains and the “Institutional Blockchain Trilemma,” which forces a compromise between interoperability, privacy, and liquidity.

The practical solution lies in Horizen, a Layer 3 built on Base. Together, they provide the access and protection institutions require without forcing compromises.

The power of this integration lies in its architecture. Horizen is not a siloed L1 or a competing L2. It is a specialized execution Layer 3 that settles on Base. If you think of Base as a massive, public economic highway, home to one of the largest pools of on-chain liquidity, then Horizen is a private and compliant layer built directly on top of it. 

For institutions, access depends on two key elements: trusted infrastructure and deep liquidity. Base provides both, making it a strong foundation for Horizen Layer 3. 

First, Base is the gateway to the largest pools of onchain capital, and by settling on Base, Horizen is plugging directly into EVM liquidity. As a result, institutions can leverage privacy without losing connectivity to deep open markets. Confidentiality and practicality are balanced. This is where confidentiality meets practicality. 

Equally important is the reliability of the underlying infrastructure, the rails of the financial system, which must meet the same standards as the assets it supports.

Base is an L2 built by and associated with Coinbase, a publicly-traded, US-based entity. It means the chain operates within one of the world's most stringent and innovative regulatory frameworks, fostering a "compliance-conscious ecosystem”, while removing a significant barrier to entry for institutions that need to know their partners share an established and recognized approach to regulatory standards. 

While Base offers access to a broad user base and deep liquidity, Horizen delivers protection through auditable confidentiality. It’s an institutional privacy layer with compliance built directly into its infrastructure.

This technology enables institutions to execute trades and manage assets securely while keeping sensitive strategies private. At the same time, it operates as a shield against the value extraction of MEV bots, front-runners, and copy-traders. It also enables verifiable compliance, allowing institutions to demonstrate regulatory adherence without exposing confidential information.

The era of compromises is over. Horizen and Base establish a new compliant standard for institutional onchain operations. Base provides access to deep liquidity and trusted infrastructure while Horizen ensures protection through auditable privacy, MEV resistance, and a compliance-ready framework. Institutions no longer need to choose between transparency and confidentiality. The new standard balances both.

The standard for onchain institutional finance is here.