SideSwap Reopens L-BTC Trading; Peg-Outs Remain Suspended

SideSwap resumed L-BTC trading on its order books after the Liquid Network began producing blocks again, but the redemption route back to native Bitcoin stayed closed as federation peg-outs remained suspended during a security review. WHAT TO KNOW SideSwap has reopened L-BTC trading. Federation peg-outs remain suspended. SideSwap Reopens L-BTC Trading SideSwap announced on September 10, 2026 that Liquid was producing blocks again and that all of its markets and swaps had reopened, according to the operator's statement. The reopening applies to SideSwap L-BTC trading and swaps, not to every function tied to the sidechain. For related coverage, see 21Shares, HashKey Cloud Join 250 BTC Stacks Staking Round. The platform describes its markets as open order books whose prices are set by buyers and sellers. SideSwap warned that an early reopening could involve thin books and large price moves, framing that as an expectation rather than a measured market reaction. For related coverage, see Metaplanet Plans $1M Hong Kong Unit to Trade Bitcoin. On September 11, SideSwap reopened Liquid peg-ins while both its own and the federation's peg-outs stayed closed, an update that supersedes the original announcement on peg-in status. Peg-ins issue 1 L-BTC per 1 BTC deposited before the platform's standard 0.1% fee, an issuance ratio that does not by itself prove full reserve backing or present redeemability. SideSwap said qualifying peg-ins below its displayed inventory balance credit after two Bitcoin confirmations if the deposit address is less than seven days old; larger peg-ins, and those not confirmed within six hours, credit after 102 confirmations. The mechanics echo the operational caution seen after prior Liquid incidents, including Blockstream's response to an alleged 4,000 BTC Liquid hack. Federation Peg-Outs Remain Suspended The September 10 announcement said federation bridge nodes were blocking peg-outs during a security review, meaning L-BTC could not be redeemed for BTC through the Federation. This is an operational federation security-review measure, not a regulatory suspension, filing, or enforcement action. Reopening L-BTC trading does not establish that federation peg-outs have resumed. The two statuses are distinct: buyers and sellers can transact L-BTC on SideSwap's books while the bridge back to native Bitcoin stays closed. SideSwap reported 4,229 L-BTC circulating on September 11, citing liquid.network, a dated operator figure that was not independently verified against live explorer data. L-BTC circulation reported by SideSwap 4,229 L-BTC SideSwap reported 4,229 L-BTC circulating on September 11, 2026, citing liquid.network. This dated operator figure was not independently verified against live explorer data. Against that circulation, SideSwap reported a federation reserve of 3,627 BTC on the same date, again citing liquid.network and again unverified through an independent explorer reading. The gap between circulating L-BTC and reserve BTC is the core reason the redemption route matters while peg-outs stay shut.