Liquid Network Pioneers Tokenized Bonds, Transforming Financial Markets
The Liquid Network [1], a Bitcoin sidechain and layer-2 solution, is making waves in the financial world by enabling the issuance and trading of tokenized bonds, a groundbreaking step toward modernizing capital markets. With a Total Value Locked (TVL) of $3.05 billion, the platform is rapidly becoming a hub for digital assets, including stablecoins, tokenized securities, and bonds. Recent developments highlight how the Liquid Network is reshaping the bond market by offering faster, more secure, and transparent financial solutions.
A New Era for Bond Issuance
Tokenized bonds [2] on the Liquid Network represent a fusion of traditional finance and blockchain technology. Unlike conventional bonds, which often involve complex intermediaries and lengthy settlement processes, tokenized bonds leverage the Liquid Network’s infrastructure for near-instantaneous settlements and enhanced privacy. The platform’s Confidential Transactions feature ensures that transaction amounts and asset types remain hidden from third parties, providing a higher degree of financial privacy for investors while maintaining regulatory compliance.
One of the standout examples of this innovation is the collaboration between Bitfinex Securities and Mikro Kapital. In December 2023, they successfully raised over $5 million in USDT through the issuance of the ALT2612 tokenized bond [3], a 36-month bond with a 10% coupon rate. This marked one of the first tokenized bonds in the microfinancing sector. Building on this success, Bitfinex Securities launched two additional tokenized bonds in July 2024, targeting up to $10 million in USDT. These bonds, with durations of 11 months (10% coupon) and 36 months (13.5% coupon), aim to support microfinance and sharing economy projects in emerging markets.
El Salvador’s Bitcoin Bond: A Sovereign Milestone
In November 2021, the Republic of El Salvador made history by announcing a $1 billion “Bitcoin Bond” on the Liquid Network [4], in collaboration with Blockstream and Bitfinex Securities. The bond, split evenly between a $500 million Bitcoin purchase and $500 million for energy and Bitcoin mining infrastructure, showcases the platform’s ability to handle large-scale, regulated financial instruments. Investors benefit from low volatility, exposure to Bitcoin price appreciation, and the potential for citizenship through investment, all facilitated by Blockstream’s Asset Management Platform (AMP) for secure coupon payouts.
This initiative underscores the Liquid Network’s role as a stable foundation for tokenized sovereign debt, enabling global capital to flow with minimal friction. By allowing investments as low as $100, the bond democratizes access to high-value financial instruments, a hallmark of the platform’s inclusive approach.
Expanding the Tokenized Bond Ecosystem
The Liquid Network’s versatility extends beyond individual issuances. Mexican fintech pioneer Mifiel has issued over 25,000 tokenized promissory notes valued at more than $1 billion, with plans for billions more in the coming years. These efforts address liquidity barriers in Latin America, demonstrating the platform’s potential to transform regional financial ecosystems. Similarly, the recent launch of tokenized US Treasury Bills (USTBL) by NexBridge, in collaboration with Blockstream and Bitfinex Securities, marks the first regulated public offering of its kind in El Salvador. This issuance is expected to push the total value of real-world assets (RWAs) on the Liquid Network to over $2 billion, representing a significant portion of the blockchain-based RWA market.
Other tokenized bonds, such as those from Mikro Kapital ($10 million) [5] and the Aquarius Fund ($8.58 million), further illustrate the growing adoption of the Liquid Network for bond tokenization. These assets benefit from the platform’s ability to support self-custody, peer-to-peer trading, and compliance without centralized intermediaries, reducing counterparty risks and enhancing investor control.
Why the Liquid Network?
The Liquid Network’s unique features make it an ideal platform for tokenized bonds. Its federated model, operated by a global network of exchanges and financial institutions, ensures no single point of failure, while its interoperability with the Bitcoin blockchain and Lightning Network enables seamless asset transfers. The platform’s use of Bitcoin’s codebase guarantees cryptographic security, and features like atomic swaps and multisig support enhance its functionality for financial applications.
Moreover, the Liquid Network’s focus on regulatory compliance allows issuers to enforce rules such as KYC and AML without compromising investor privacy. This balance of security, privacy, and compliance has attracted a diverse range of participants, from microfinance firms to sovereign governments, all seeking to leverage the platform’s capabilities.
Wallets and Options for Accessing Liquid Network Assets
The Liquid Network’s ecosystem is supported by a variety of non-custodial wallets that provide users with secure and user-friendly options to access, manage, and trade assets such as Bitcoin, Tether USDT, and tokenized bonds. These wallets leverage the network’s fast transaction speeds, low fees, and Confidential Transactions to ensure privacy and security. Below are some key wallets and their features for accessing Liquid Network assets:
Blockstream Green: A highly secure, multi-platform wallet available on iOS, Android, and desktop, Blockstream Green [7] supports both Bitcoin and Liquid Network assets. It offers robust features like two-factor authentication, multisig security, and an intuitive interface, making it ideal for managing tokenized bonds and other digital assets. Users can seamlessly send, receive, and store assets while benefiting from the Liquid Network’s privacy features.
Aqua Wallet: A mobile-first wallet tailored for the Liquid Network, Aqua Wallet [8] supports Bitcoin, USDT, and other tokenized assets. It provides a simple interface for beginners and advanced features like atomic swaps for cross-chain trading. Its non-custodial nature ensures users retain full control, while its integration with the Liquid Network enables fast, private transactions. Aqua Wallet is particularly popular for users looking to manage smaller transactions or explore tokenized assets.
SideShift Wallet: Developed by Sideswap [9], this wallet focuses on ease of use and cross-asset trading on the Liquid Network. It supports a wide range of assets, including tokenized bonds and stablecoins, and allows users to perform atomic swaps for seamless exchanges. SideShift is ideal for users seeking flexibility in trading and managing Liquid-based assets, with a strong emphasis on privacy and self-custody.
These wallets provide diverse options for users, from individual investors managing tokenized bonds to groups collaborating on shared expenses. Each wallet emphasizes non-custodial control, ensuring users maintain sovereignty over their assets while leveraging the Liquid Network’s advanced features like Confidential Transactions and interoperability with the Bitcoin blockchain.
Cowbolt: Simplifying Bitcoin Access on the Liquid Network
The Liquid Network’s accessibility is further enhanced by innovative applications like Cowbolt [6], a non-custodial wallet designed to streamline Bitcoin and Tether USDT transactions for teams, friends, and families. Launched at the Bitcoin Conference in Las Vegas in May 2025, Cowbolt integrates seamlessly with the Liquid Network and Lightning Network, offering users a secure and user-friendly way to manage, split, and settle expenses in Bitcoin or USDT. The wallet’s peer-to-peer functionality allows for instant global settlements without intermediaries, making it an ideal tool for group collaboration, remittances, and everyday payments. By holding private keys directly, users maintain full control over their funds, aligning with the Liquid Network’s ethos of self-custody and financial sovereignty. Cowbolt’s intuitive design and support for low-cost transactions make it a powerful onramp for Bitcoin adoption, as highlighted by co-founder Daniel Ekström: “We believe the most powerful onramp to Bitcoin isn’t an exchange — it’s people.”
A Bright Future for Tokenized Bonds
As the global capital markets, valued at over $100 trillion, increasingly embrace blockchain technology, the Liquid Network is positioning itself as a leader in Bitcoin-based financial innovation. By offering a secure, scalable, and interoperable platform for tokenized bonds, it is paving the way for more accessible, efficient, and transparent financial markets. With ongoing developments and growing adoption, the Liquid Network is not just transforming the bond market—it’s redefining the future of finance.