Liquid Network said it has upgraded the federation node software that manages the network’s bitcoin reserves, reaching a key milestone in its recovery. According to Foresight News, the network is coordinating with participating exchange services to reopen semi-automated BTC-LBTC swaps, with no protocol-level limits; most users will be able to convert LBTC back to BTC.

Direct federation peg-outs remain restricted. Liquid said the final recovery stage is to rebuild its 1:1 bitcoin reserves, after which normal federation peg-outs will resume for authorized PAK key holders. The network also plans to make reserve information publicly verifiable through a block explorer.