What Liquid Network does

Liquid Network is a Bitcoin sidechain launched in September 2018 that operates as a federated financial layer for digital asset issuance and fast settlement, anchored to the Bitcoin blockchain via a two-way peg secured by 15 hardware security modules (functionaries). Built on Blockstream's Elements open-source protocol, the network enables 2-minute confidential settlements, asset issuance (stablecoins, security tokens, tokenized RWAs), and smart contracting, distinguishing it from Ethereum-based alternatives by reusing Bitcoin as the native asset rather than issuing a separate token. The network is governed by the Liquid Federation, a consortium of 81 member companies spanning exchanges (Bitfinex, BtcTurk, BTSE), trading desks (Aquanow, CoinShares, JST Capital), wallet providers (Ledger, Blockstream Green/Jade, AQUA), tokenization platforms (Bitfinex Securities, STOKR, NexBridge, eNor, DigiShares), and infrastructure companies (Boltz, Breez, Nym Technologies, Vulpem Ventures). Blockstream Corporation Inc. serves as the founding technology provider, developing the Elements protocol, Confidential Transactions (using Pedersen commitments and range proofs), the Asset Management Platform (AMP), and the Liquid Wallet Kit (LWK) Rust developer toolkit.

Liquid's business model is a federated, protocol-level construct rather than a centralized revenue capture. The network itself charges only minimal transaction fees (~0.1 sat/vB average) and has no subscription or licensing fees. Economic value accrues primarily to Federation members, who monetize services like exchange trading, tokenization platform fees, custodial services, and OTC settlement, and to Blockstream via the AMP platform for asset issuers. Distribution occurs through three primary GTM motions: enterprise field sales targeting exchanges and financial institutions for Federation membership, channel partners (Bitfinex Securities, STOKR, SideSwap, NexBridge, eNor, DigiShares) offering turnkey tokenization, and developer community building via Liquid Bootcamps (Mexico City, São Paulo, Turin), the Elements Academy video series, and the BuildOnL2 community forum. The network holds $5B in Total Value Locked across L-BTC, stablecoins (USDT $97M), and tokenized securities (BMN2 $877M, Mifiel promissory notes $2.1B, USTBL $32M, Aquarius Fund $15M), and supports 500+ registered assets across global markets with operational presences in the US, Japan, Korea, Taiwan, El Salvador, Brazil, Mexico, Italy, and Turkey.

Name

Liquid Network

Legal name

Blockstream Corporation Inc.

Website

https://liquid.net

Company type

Private

Founded year

2018

Operating status

Operating

Headcount range

1–10 employees

Short description

Liquid Network is a federated Bitcoin sidechain that enables fast 2-minute confidential settlement, stablecoin and security token issuance, and tokenized real-world asset markets, serving exchanges, trading desks, tokenization platforms, and developers building Bitcoin L2 applications.

Ownership category

akta.pro rank

Product category

Blockchain Infrastructure

NAICS

Financial Transactions Processing, Reserve, and Clearinghouse Activities (522320), Securities and Commodity Exchanges (523210)

SIC

Security & Commodity Brokers, Dealers, Exchanges & Services (6200), Finance Services (6199)

akta.pro primary industry

On-Chain Payments & Stablecoin Infrastructure (Issuance, Rails, Treasury) (FSAGAMAD)

akta.pro secondary industries

Stablecoin Payment Rails & Settlement Networks (Issuer-Led) (FSADADAF), Institutional DeFi & On-Chain Liquidity Infrastructure (Permissioned DeFi, Lending) (FSAGAMAG), Liquidity Infrastructure (RFQ, order-book engines, matching, liquidity-as-a-service) (FSAPADAI)

Keywords

• Bitcoin sidechain protocol
• Digital asset issuance
• Confidential transactions
• Blockchain financial infrastructure
• Tokenized securities platform

Headquarters

HQ city

Global

Offices1 record

Markets served

GTM type

B2B

Offering type

Software

Cost components

Technology or R&D, Personnel, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Network Protocol Revenue: The Liquid Network is an open network protocol; there is no direct revenue model for using the network itself. Transaction fees are minimal (0.1 sat/vB average). Revenue accrues to Federation members (exchanges, trading desks) who provide services on the network.
2. Platform/SaaS Services (via Blockstream): Blockstream, as technical provider, offers the Asset Management Platform (AMP) for asset issuers. Federation partners like Bitfinex Securities, STOKR, and NexBridge generate revenue through tokenization services, security token offerings, and trading platform fees.

Pricing tiers

Go-to-market motion3 records

Distribution channels7 records

Marketing channels9 records

Core offering

Liquid Network is a Bitcoin Layer-2 sidechain built on the Elements open-source protocol, enabling fast (two-minute) confidential settlement and digital asset issuance anchored to the Bitcoin blockchain. The network supports issuance of stablecoins (e.g., USDt), security tokens (e.g., Blockstream Mining Note, USTBL), and other financial instruments, with Confidential Transactions blinding amounts and asset types by default. Governance is distributed across the 81-member Liquid Federation, while Blockstream Corporation Inc. serves as the technology provider.

Product overview

Liquid Network is a Bitcoin sidechain serving as the financial layer for digital asset issuance and capital markets. The core platform enables fast, confidential Bitcoin transactions and issuance of digital assets including stablecoins (Liquid USDt), security tokens (Blockstream Mining Note, Aquarius Fund, TreeBR), and other financial instruments. Key products include: Liquid Bitcoin (L-BTC) for pegged BTC transactions; Blockstream AMP for asset management; Liquid Wallet Kit (LWK) for wallet development; Elements as the underlying open-source platform; and TDEX for decentralized trading. The ecosystem includes multiple wallet integrations (AQUA, Blockstream Green, SideSwap, Marina, Specter Desktop) and trading platforms (Bitfinex Securities, STOKR, SETTLENET) that form the complete Liquid-based capital market infrastructure.

Differentiator

Problem solved

Functional benefit

Products and services

• Liquid Network
• Liquid Bitcoin (L-BTC)

Quantifiable outcome

• Transaction settlement: 2 minutes (10x faster than Bitcoin)
• +4 more outcomes

Named customers13 records

Segments5 records

Ideal customer profiles4 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration18 records

Feature7 records

Partnerships

32 partnerships are on record, tiered core, major and minor.

• BlockstreamcoreTechnology or Integration · 1 September 2018Blockstream is the founding technical provider for the Liquid Network, developing the Elements sidechain technology, Confidential Transactions, Asset Management Platform (AMP), and core infrastructure. Provides ongoing development, technical support, and operates as key technology partner to the Liquid Federation.
• BitfinexcoreTechnology or IntegrationMajor cryptocurrency exchange supporting L-BTC trading and USDt on Liquid. First venue to offer Liquid USDt deposits/withdrawals. Enables fast settlement and atomic swaps for traders.
• BTCPay ServercoreTechnology or IntegrationOpen-source, self-hosted payment processor integrating Liquid for merchant point-of-sale transactions. Enables BTC-to-fiat conversions and Lightning/Liquid interoperability without third-party fees.
• Blockstream GreencoreTechnology or IntegrationBlockstream's multi-platform wallet (iOS, Android, desktop) supporting Liquid Bitcoin and issued assets. Provides 2FA-protected multisig security and hardware wallet integration for self-custody.
• LedgercoreTechnology or IntegrationHardware wallet manufacturer bringing Liquid asset support to Ledger Nano S and Ledger Vault. Enables secure cold storage of L-BTC and other Liquid assets.
• Blockstream JadecoreTechnology or IntegrationOpen-source hardware wallet developed by Blockstream for secure Bitcoin and Liquid asset storage. Features advanced security with air-gap capability via QR codes.
• Hodl HodlcoreChannel Partner/ Reseller/ DistributorNon-custodial Bitcoin marketplace adding L-BTC as payment option. Enables P2P Bitcoin trading with faster Liquid-based settlements.
• SideSwapcoreChannel Partner/ Reseller/ DistributorNon-custodial wallet providing Liquid peg-in/pegin services and atomic asset swaps. Reduces peg-in time 50x (2 confirmations vs 102) via hot wallet pre-delivery.
• BoltzcoreTechnology or IntegrationNon-custodial Bitcoin bridge for swapping between Bitcoin layers (Liquid and Lightning). Enables trustless atomic swaps for channel rebalancing and cross-layer transfers.
• Specter SolutionscoreTechnology or IntegrationSpecter Desktop wallet integrated Liquid support, enabling L-BTC transactions and Liquid multisig. DIY hardware wallet solution with air-gap QR communication.
• BreezcoreTechnology or IntegrationLightning wallet implementing nodeless SDK powered by Liquid. Enables Lightning payments using Liquid assets and channel rebalancing via Liquid swaps.
• Vulpem VenturescoreTechnology or IntegrationSoftware development company creating Marina browser extension (first Liquid wallet browser extension), Liquid.Taxi, Liquid.Coach tools, and maintaining Go Elements library.
• AlbycoreTechnology or IntegrationBrowser extension wallet supporting Liquid and Lightning. Enables web payments and Nostr integration for Bitcoin L2.
• Tether (USDT)coreChannel Partner/ Reseller/ DistributorLargest stablecoin by market cap launched on Liquid in July 2019, enabling USDt trading and payments on Liquid with faster settlement and Confidential Transactions.
• Bitfinex SecuritiescoreChannel Partner/ Reseller/ DistributorRegulated security token platform (AFSA, AIFC) listing tokenized securities on Liquid. First platform to receive Digital Asset License under El Salvador's 2023 securities law.
• STOKRcoreChannel Partner/ Reseller/ DistributorEuropean digital securities issuance platform with VASP supervision from Luxembourg CSSF. Primary issuance agent for Blockstream Mining Note, EXO tokens, and Aquarius Fund.
• eNor SecuritiesmajorChannel Partner/ Reseller/ DistributorInvestment exchange providing tokenized securities issuance and trading on Liquid. Committed to empowering clients with access to global tokenized economy.
• DigiSharesminorChannel Partner/ Reseller/ DistributorWhite-label tokenization platform digitizing and automating investments, distributions, and trading for real estate and fund tokenization on Liquid.
• DIGTLcoreChannel Partner/ Reseller/ DistributorDigital Markets platform connecting global investors with tokenized securities. Partner in TreeBR TREE token and MERJ Exchange integration for security token trading.
• Crypto GaragecoreTechnology or IntegrationJoint venture between Digital Garage, Tokyo Tanshi, and Blockstream building SETTLENET platform in Japan's regulatory sandbox. Launched JPYS JPY stablecoin on Liquid.
• Bull BitcoincoreTechnology or IntegrationCanadian Bitcoin exchange launching L-CAD stablecoin on Liquid. BULL Wallet for iOS enables confidential BTC payments and cold storage.
• NexBridgecoreChannel Partner/ Reseller/ DistributorDigital asset issuer launching USTBL tokenized U.S. Treasury Bills on Liquid. First regulated public offering of tokenized Treasuries, operating under El Salvador's Digital Asset Law.
• MifielcoreChannel Partner/ Reseller/ DistributorPlatform issuing promissory notes as tokenized securities on Liquid. Over $2.1 billion in issuances, enabling fast, compliant document tokenization.
• SevenlabscoreTechnology or IntegrationInfrastructure provider developing TDEX protocol for peer-to-peer non-custodial exchange on Liquid. Enables market makers to signal liquidity in asset pairs.
• JAN3 (AQUA Wallet)coreTechnology or IntegrationCompany developing AQUA wallet for simplified Liquid payments and cross-border remittances, particularly in Latin America.
• TreeBRminorChannel Partner/ Reseller/ DistributorAlliance of Amazon rainforest landowners issuing TREE security token (1 ton CO2 offset) on Liquid for conservation monetization.
• Satoshis Games / Light NiteminorChannel Partner/ Reseller/ DistributorGaming studio tokenizing in-game assets (skins) as NFTs on Liquid for tradable digital collectibles in Light Nite battle royale game.
• INXmajorChannel Partner/ Reseller/ DistributorPlatform for listing and trading regulated security tokens and cryptocurrencies, integrating Liquid Securities as key part of trading services.
• Watchdog CapitalmajorChannel Partner/ Reseller/ DistributorBroker-dealer offering securities services on Liquid using Blockstream AMP. Wide range of capabilities in securities transactions and investment banking.
• ListedReserveminorChannel Partner/ Reseller/ DistributorPlatform launching Australian dollar stablecoin on Liquid.
• RaretoshiminorChannel Partner/ Reseller/ DistributorNFT marketplace for physical and digital art powered by Liquid, enabling tradeable tokenized artwork.
• SideShift AIcoreChannel Partner/ Reseller/ DistributorNon-custodial exchange enabling instant BTC to L-BTC swaps and supporting Liquid assets.

Scale indicators12 records

Recent moves6 records

Expansion highlights6 records

Broad incumbents

• Stellar Development Foundation: Stellar is an L1 purpose-built for asset issuance, tokenized securities and cross-border payments. Comparable to Liquid for tokenized asset issuance, fiat on/off-ramps and stablecoin settlement, but on its own non-Bitcoin ledger.
• Solana Labs: Solana is a high-throughput L1 increasingly hosting tokenized assets, stablecoins and capital-markets applications. Comparable to Liquid for fast, low-fee settlement and asset issuance at internet scale, on a non-Bitcoin architecture.
• Avalanche Foundation: Avalanche is an L1 with strong subnets for tokenized real-world assets and institutional DeFi, including tokenized treasuries and securities. Overlaps with Liquid's RWA-tokenization use case on a broader, non-Bitcoin base layer.

Direct peers

• Stacks: Stacks is a Bitcoin L2 focused on smart contracts, DeFi and tokenized assets that settles on Bitcoin. Competes with Liquid for the "Bitcoin financial layer" narrative and developer mindshare for L2 applications.
• Polygon Labs: Polygon operates sidechain-style scaling infrastructure and hosts significant stablecoin liquidity and tokenized asset issuers (e.g., RWA partners). Comparable to Liquid as a scale-and-settlement layer for tokenized assets and stablecoins, though on Ethereum rather than Bitcoin.
• Rootstock (RSK): Rootstock is a Bitcoin sidechain enabling smart contracts and tokenized assets via EVM compatibility. Direct architectural comparable to Liquid: both are federated pegged Bitcoin sidechains targeting financial applications and asset issuance.
• Lightning Network (Lightning Labs): Lightning is Bitcoin's primary payments L2 using state channels. Comparable to Liquid as a Bitcoin L2 — different trade-offs (instant payments vs. tokenized assets), and Lightning is increasingly interop-integrated with Liquid via Boltz, Breez and PeerSwap.

Others

• Chainalysis: Chainalysis is a blockchain analytics, compliance and investigation infrastructure provider. Comparable to Liquid's compliance-oriented positioning (whitelisting, KYC/AML through AMP) only in the loose sense of shared "crypto infrastructure" category; not a direct competitor.
• Blockstream: Blockstream is the technology provider to the Liquid Federation, developing Elements, AMP, LWK and the functionary code. Not a peer in a competitive sense — it is the entity that builds and operates the Liquid protocol, with adjacent satellite products (Jade, Green, BMN).
• INX: INX is a regulated platform for listing and trading tokenized securities and cryptocurrencies and is a federation partner of Liquid. Related ecosystem participant in security-token issuance and trading — not a direct protocol competitor, but a key channel for Liquid-based issuance.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/Liquid_BTC
• GitHubgithub.com/elementsProject/elements
• YouTubeyoutube.com/liquidnetwork
• LinkedInlinkedin.com/company/liquid-network

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Liquid Network