Matter Labs Axes Team Amid Shift to Regulated Blockchain Platform

Matter Labs, the company behind ZKsync, Ethereum's L2 scaling solution, has laid off part of its team to focus on Prividium, a private blockchain platform for regulated financial institutions. According to CEO Alex Gluchowski, this restructuring does not reflect the performance of the affected employees but rather the evolution of the product and priorities.

Gluchowski explained that Matter Labs began shifting towards regulated institutional clients in 2024, leading to the creation of Prividium. Feedback from these clients redefined the expertise profile required to develop the platform, leaving some existing roles out of alignment with the new priorities.

The crypto community has questioned the fate of the approximately $450 million raised in previous funding rounds, given that the company is reducing its headcount while simultaneously seeking new funds. One user asked where that capital had gone, and if it was being used effectively.