Liquid: Network's Bitcoin reserves fully restored, all LBTC again backed 1:1 by BTC

Source: PANews2026/11/03 08:06

Analysis

The restoration of full 1:1 BTC backing for LBTC shifts Liquid from a recovery posture back to normal redemption mechanics, which matters most for holders who depend on the peg for arbitrage and cross-chain settlement. The Federation's emphasis on node-verifiable proof of reserves and a public dashboard is a transparency concession that partly addresses the trust gap created by the earlier shortfall, though it does not by itself explain how the reserves were rebuilt. Watch whether the promised governance overhaul produces named oversight roles and published attestations, whether LBTC supply and on-chain activity recover toward prior levels, and whether participating providers keep 1:1 conversions liquid during stress.

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PANews, November 3: According to official information, the Liquid Federation has announced that the network's Bitcoin reserves have been fully restored, and all LBTC has regained 1:1 BTC backing. Over the past few weeks, BTC and LBTC conversions have already been restored, and users can move between Bitcoin and Liquid at a 1:1 ratio through participating providers. Liquid said these milestones mark important progress in the recovery effort.

Liquid stated that the network's Bitcoin reserves can be independently verified: users running a Liquid node can directly verify the proof of reserves, and reserve balances and network activity can be monitored via the official public dashboard. Going forward, the Liquid Federation will modernize its governance structure, clarify responsibilities and oversight, and implement additional technical and operational safeguards.

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