Liquid Federation Restores Bitcoin Reserves and LBTC’s 1:1 Backing

Liquid Federation has restored the Bitcoin reserves backing Liquid’s LBTC after a reserve shortfall, reinstating 1:1 backing for all LBTC and enabling transfers between Bitcoin and Liquid through participating swap providers.

The federation said the restored reserves cover the full LBTC supply. Users can now move between Bitcoin (BTC) and Liquid at a one-to-one rate through services that participate in swaps. The transfer option is tied to those providers, the route specified for moving between the Bitcoin asset and Liquid.

The update centers on two linked points: reserve backing is fully restored, and 1:1 transfers are available through participating swap services. In this context, the 1:1 ratio describes the relationship between BTC reserves and LBTC. Liquid Federation said the ratio applies to all LBTC, while the transfer service allows users to move between Bitcoin and Liquid on the same basis.

The announcement describes the restored reserve as a return to full backing after the shortfall.