⚡️ KaleidoSwap demonstrates that RGB protocol assets can run natively on Liquid Network, Blockstream's federated Bitcoin sidechain, without bridges, wrapped tokens, or a parallel protocol. In a deep dive published on 13 July, the KaleidoSwap engineering team showed that RGB's commitment mechanism, embedded inside a standard Taproot output following BIP-341, is accepted by standard RGB verifiers on Liquid without modification. The only new code required was 207 lines across seven files to handle Liquid transaction reads. None of the protocol's 45 existing tests needed changes. The team issued a real RGB20 asset on Liquid and demonstrated an atomic swap between an RGB asset on Bitcoin and one on Liquid, with no custodian involved. The swap is bound by a shared secret: either both legs complete, or neither does. A key motivation is Simplicity, Blockstream's formally verifiable smart contract language now live on Liquid mainnet since July 2025. KaleidoSwap wrote a Simplicity covenant that consensus enforces on every seal spend, requiring it to carry a valid RGB commitment. This makes Liquid's spending conditions spending conditions on the asset itself. The result is an open-source proof of concept, not a production-ready product. The team has submitted the patch as an RFC in the official RGB repository. KaleidoSwap, a founding member of the RGB Protocol Association alongside Bitfinex and Tether, describes RGB on Liquid as the natural next scenario for its market-maker network. atlas21.com/kaleidoswap-nati…