Blockstream launches Blockstream Swaps for Bitcoin, Lightning, and Liquid networks

Blockstream has rolled out a new product called Blockstream Swaps, enabling users to move funds seamlessly between Bitcoin’s mainchain, the Lightning Network, and the Liquid Network. The service, announced on August 10, 2026, is currently in beta with select participants and aims to fill a growing gap in Bitcoin’s cross-layer infrastructure. The timing is notable. Just one week earlier, on August 3, Boltz, the most prominent swap service connecting these same Bitcoin layers, suspended operations after a wave of AI-directed attacks forced it offline. How the swaps actually work Under the hood, Blockstream Swaps uses HTLC-based atomic swap mechanisms. HTLC stands for Hash Time-Locked Contract, which is essentially a smart contract that ensures either both sides of a trade complete or neither does. This trustless design means no intermediary ever holds your funds during a swap. If something goes wrong mid-transaction, the funds return to their original owner after a timeout period. The service supports what are known as submarine swaps. These allow users to convert on-chain BTC into LBTC (Liquid Bitcoin, the pegged native asset of the Liquid Network) and route payments through Lightni...