Blockstream Connects Lightning and Liquid for Faster, Private Bitcoin Payments

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 BTC$92,134.07 payments.

A fresh version of the Blockstream Green 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 Green app.