Liquid Network Restores Full Bitcoin Reserves, Reestablishes 1:1 LBTC Backing

Liquid Network has fully restored its Bitcoin reserves, reestablishing complete BTC backing for all Liquid Bitcoin (LBTC) tokens. The development marks a significant recovery milestone for the Bitcoin sidechain following efforts to restore its reserve position.

Liquid Federation Restores 1:1 LBTC Backing and Confirms Reserve Verification

According to an official announcement, the network has reestablished 1:1 Bitcoin backing for all LBTC, following the earlier restoration of BTC and LBTC swaps through participating service providers. Users can exchange Bitcoin and LBTC at a 1:1 rate through supported swap services, while the restored reserves bring the network’s backing into line with its established operating model.

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Liquid Network operates as a Bitcoin sidechain, allowing participants to transfer value using LBTC, with each token relying on corresponding Bitcoin reserves to maintain its intended relationship with BTC. The Federation described the reserve restoration as an important recovery milestone, emphasizing its commitment to maintaining network stability, operational security, and participant protection.

Meanwhile, the Liquid Federation reaffirmed that users can independently verify Bitcoin reserves through existing tools, including direct Proof of Reserves verification using their own Liquid nodes.

Besides node verification, users can monitor reserve balances and network activity through the public dashboard at Liquid Network, allowing independent assessment of the network’s reserve position. Together, the restored Bitcoin reserves and operational swap services represent two important milestones in the network’s recovery process.

Liquid Federation Outlines Governance Reforms and Additional Security Measures

The Federation has also outlined several initiatives intended to improve Liquid Network’s security and governance arrangements. Planned changes include modernizing governance structures and establishing clearer responsibilities among participants responsible for network operations.

Additionally, the organization intends to introduce stronger technical safeguards and operational controls across the network. These measures aim to reduce operational risks while improving oversight and protecting users against potential disruptions.

The Federation acknowledged the Bitcoin community, Liquid users, and ecosystem partners for supporting its recovery efforts. Their involvement contributed to the restoration process and the network’s broader infrastructure improvements.

Further details regarding the proposed governance reforms and security measures will emerge through subsequent Federation announcements. The organization has identified reserve restoration as a completed milestone within its wider recovery program.

The restoration of full Bitcoin backing reestablishes a central requirement of Liquid Network’s LBTC system. Meanwhile, the Federation is preparing additional governance and security improvements to strengthen the network’s long-term operational resilience.