Blockstream has launched model 5.1.4 of its self-custodial pockets software, including assist for direct swaps between the Lightning Community and the Liquid sidechain.
Lightning ↔ Liquid swaps are dwell. 🌊
Irrespective of the place you are taking your bitcoin, the Blockstream app ensures you may spend effortlessly, reliably, and privately.
Absolutely open-source. Absolutely self-custodial. pic.twitter.com/S7xydIJ0Kx
— Blockstream (@Blockstream) December 10, 2025
The replace permits customers to ship and obtain Lightning funds utilizing Liquid Bitcoin (LBTC) balances with out working Lightning fee channels.
The swap performance is powered by Boltz, a non-custodial Bitcoin bridge that facilitates atomic swaps between completely different Bitcoin layers. Boltz supplies the technical infrastructure enabling interoperability between Lightning and Liquid.
With the replace, customers pays Lightning invoices instantly from their LBTC stability and obtain Lightning funds which might be credited to Liquid.
The swaps depend on cryptographic hash time-locked contracts (HTLCs), which be certain that transactions both full in full or are mechanically refunded. At no level does a 3rd occasion take custody of consumer funds.
Blockstream characterised the replace as a part of its broader product improvement technique. In a press release included with the discharge, the corporate stated:
“We’re constructing the all-in-one Bitcoin expertise.”
In accordance with the corporate, the combination permits entry to Lightning’s fee community with out requiring customers to handle channels or inbound liquidity.
Liquid acts as an middleman settlement layer, permitting customers to entry Lightning performance whereas suspending potential on-chain transaction charges.
The replace additionally introduces further choices for UTXO and liquidity administration. Customers can withdraw funds from exchanges by way of Lightning, obtain the funds right into a Liquid stability, and later transfer these funds to the Bitcoin important chain for chilly storage.
Liquid’s confidential transaction mannequin limits public visibility into transaction quantities and balances.
Blockstream additionally confirmed that on-chain Bitcoin swap performance is deliberate for a future replace.
As soon as carried out, customers will have the ability to swap between Lightning, Liquid, and on-chain Bitcoin inside the app.
That is anticipated to permit motion of funds between chilly storage and each Layer 2 networks with out routing by way of centralized exchanges.
The Lightning–Liquid swap characteristic is now accessible in model 5.1.4 of the Blockstream app. On-chain swapping has not but been launched and stays below improvement.
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