Share this article
Blockstream Connects Lightning and Liquid for Faster, Private Bitcoin Payments
The new update enables trustless swaps between Lightning and Liquid, removing technical hurdles for fast, self-custodial BTC spending, the company said.
Updated Dec 10, 2025, 2:51 p.m. Published Dec 10, 2025, 1:00 p.m.
What to know:
- Blockstream’s app now supports atomic swaps between the Lightning and Liquid networks, enabling private bitcoin payments without channel management.
- The update lets users pay Lightning invoices directly from their Liquid bitcoin (LBTC) balances in a self-custodial way.
- Upcoming features will add on-chain swap support and hardware wallet integration to extend multi-layer bitcoin interoperability.
Blockstream has rolled out an update to its mobile app that allows users to swap between Bitcoin’s Lightning and Liquid networks, aiming to lower the entry barrier for private, fast bitcoin payments.
STORY CONTINUES BELOW
A fresh version of the Blockstream app introduces support for trustless atomic swaps between Lightning and Liquid. The change lets users pay Lightning invoices directly from their Liquid bitcoin (LBTC) balances, avoiding the need to manage Lightning channels or maintain inbound liquidity, a process that can be technically challenging for many.
Lightning is designed for instant, low-fee bitcoin payments. Liquid, by contrast, is a sidechain that offers confidential transactions and easier management of unspent bitcoin outputs (UTXOs). By linking the two networks through atomic swaps, Blockstream is attempting to give users the benefits of both without requiring deep technical involvement.
The swap process happens self-custodially and relies on cryptographic hash locks, ensuring that both sides of the transaction are completed or neither is. If something fails, funds return automatically to the original wallet.
This approach may appeal to users who want to spend bitcoin in places that accept Lightning, like cafes or online stores, but prefer to hold their funds in more private, off-chain environments like Liquid. The company also points to benefits for merchants, who can accept payments through Lightning while securing assets in a Liquid wallet with no need to expose balances or rely on hot wallets.
Blockstream says further updates are coming, including support for on-chain swaps, allowing users to move funds between bitcoin’s main network, Liquid, and Lightning from within a single interface. Another future feature will allow Lightning payments to be received by hardware wallets like the Blockstream Jade.
The integration is part of an ongoing effort to improve interoperability across bitcoin’s growing ecosystem of second-layer protocols, while preserving user control of private keys. The update is now live in the Blockstream app.
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
The Protocol: Stripe’s Tempo Testnet Goes Live
Also: ZKSync Lite to Sunset, Blockstream App Update, Axelar’s AgentFlux
What to know:
This article is featured in the latest issue of The Protocol, our weekly newsletter exploring the tech behind crypto, one block at a time. Sign up here to get it in your inbox every Wednesday.
Top Stories
