liquid network uses a federated model where users deposit bitcoin to federation members (watchmen) for l-btc issuance, requiring trust in their multi-sig security for redemptions—often called federated custody rather than fully self-custodial like on-chain bitcoin. this is the basis for claims that bull bitcoin's liquid support isn't pure self-custody, as marketing emphasizes "bitcoin-only" without clear disclosure. see the root post here: View quoted note → blockstream

Blockstream: Bitcoin and digital asset infrastructure

The Liquid Network | Bitcoin layer-2 solution for digital asset issuance.

Bitcoin’s leading sidechain, enabling fast, confidential transactions, and the issuance of assets.