The Liquid Network is a blockchain for exchanges, brokers, and market makers that enables fast, private Bitcoin transactions with other members of the network. Through Liquid’s Issued Assets feature, members can tokenize fiat currencies, securities, or even other cryptocurrencies.
✓ Backed by Bitcoin
Bitcoin enters the Liquid Network through a peg-in process, where bitcoin are locked on the main chain and an equal amount of Liquid bitcoin (L-BTC) is issued on the Liquid Network. Liquid bitcoin (L-BTC) is verifiably 1-to-1 backed by Bitcoin, and can be redeemed on the Bitcoin main chain at any time.
✓ Issuing Assets & Tokenized Fiat
Any institution that has custody of assets, such as fiat or cryptocurrencies, may use Liquid to issue a tokenized version of the asset. Once in Liquid, this asset can be traded freely within the network, taking advantage of Liquid’s privacy, speed, and secure trading features.
✓ Accessing the Liquid Network
The Liquid Network is operated by a federation of cryptocurrency exchanges and financial institutions that run specialized hardware to secure the network. Individual traders can also access the network via the Liquid Wallet client on their device, allowing everyone to freely take custody of their Liquid assets.
✓ Verifiable Auditing
In addition to enhanced transaction privacy, Liquid users can selectively provide verifiable audit records to third parties. Exchanges can provide proof of Liquid-based reserves without needing to disclose other sensitive data to competitors.
✓ Operated by Industry Leaders
The Liquid Network’s members consist of some of the largest exchanges, trading desks, brokers, and financial institutions in the industry. Distributed around the world, the network is designed to ensure there is no single point of failure.