Bitcoin
Liquid Network Onchain Data Shows L-BTC Collateral Ratio Dropping to Under Five Percent
Public blockchain metrics reveal a substantial reserve deficit on the Liquid sidechain following an unauthorized withdrawal of Bitcoin collateral.
Public network data recorded on September 7, 2026, shows that circulating L-BTC tokens on the Liquid Network are backed by roughly 0.047 Bitcoin per token, representing a collateral ratio of 4.70%. The Liquid Federation’s reserve held 197.47 BTC against a circulating supply of 4,205.02 L-BTC, leaving a deficit of 4,007.55 Bitcoin, or approximately $319 million.
Prior to an unauthorized peg-out transaction on September 6, the federation's multisignature reserve address held over 4,200 BTC, maintaining full one-to-one parity with the circulating supply. Following the withdrawal recorded at Bitcoin block 965,928, the reserve balance fell to 197.47 BTC while the issued token total remained unchanged at Liquid block 4,050,335.
Liquid operates as a dedicated Bitcoin sidechain designed for confidential, one-minute transaction settlements among exchanges and institutional trading desks. Under standard operations, every L-BTC unit is meant to be fully backed by one Bitcoin in custody, meaning the current reserve would only satisfy redemptions for less than five percent of outstanding tokens if simultaneously claimed.
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