Bitcoin sidechain Liquid Network tops $3 billion in TVL amid real-world asset tokenization surge

The Liquid Network recently exceeded $3 billion in total value locked amid a surge in tokenized real-world assets and financial products.

The milestone underscores Liquid's role in helping enterprises and regulated financial institutions worldwide to issue, trade, and settle a broad range of digital assets on Bitcoin's secure foundation, the federation said in a statement shared with The Block.

"Surpassing the $3 billion threshold marks a pivotal moment for both Liquid and Bitcoin, signaling the evolution of Bitcoin's ecosystem into a full-fledged platform for global financial markets," Blockstream co-founder and CEO Dr. Adam Back said. "As Bitcoin gains mainstream acceptance, and demand for regulated asset tokenization accelerates, Liquid is better positioned than ever to bridge Bitcoin with traditional finance and drive the next wave of capital markets innovation."

The Liquid Network is a Bitcoin sidechain developed by Blockstream and operated by the Liquid Federation — a group of over 80 exchanges, financial institutions, and infrastructure providers, including Bitfinex and CoinShares. Users peg in BTC to receive L-BTC, enabling fast and private bitcoin transfers on the network. Liquid also supports asset issuance, such as stablecoins and securities, and is secured by Federation-managed functionaries, offering an efficient layer for Bitcoin-based settlement and trading.

Blockstream's AMP platform, built on Liquid, has facilitated over $1.8 billion in tokenized private credit to date. It also supports additional financial products, including tokenized U.S. Treasuries and currency-based instruments.

Liquid Network total value locked. Image: Liquid Federation.

Tokenized real-world asset adoption The Liquid Network's $3.27 billion in deposits comes amid the broader adoption of tokenization for real-world assets. That market already accounts for $22.2 billion onchain, according to RWA.xyz , and is projected to grow to $30 trillion by 2030 — demonstrating the need for a scalable, secure digital assets infrastructure.

Asset management giant BlackRock's BUIDL fund now dominates the tokenized government securities niche with $2.9 billion in assets under management. Last month, BlackRock also filed to offer tokenized shares of its $150 billion Treasury Trust fund via BNY Mellon.

The Liquid Federation plans to launch Simplicity smart contract capabilities on mainnet, expand asset issuance, and grow financial partnerships over the coming months, aiming to cement Liquid as a core platform for tokenized finance on Bitcoin.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures .

LATEST CRYPTO NEWS

Naver and Upbit to pour $7 billion into AI, blockchain following mega-merger: reports

Upbit suffers $37 million hack on Solana assets, halts withdrawals

Bitcoin rebounds above $91,000 as December rate cut odds rise

SpaceX transfers $105 million in bitcoin to unmarked wallets: Arkham

Bitcoin sidechain Liquid Network tops $3 billion in TVL amid real-world asset tokenization surge

Quick Take

Subscribe for Premium Content

RATINGS

Crypto infrastructure firm Taurus becomes custodian and super validator for Canton Network