Circle Launches Bitcoin-Backed Wrapped Token cirBTC on Ethereum

Circle, the company behind the USDC stablecoin, has introduced a new product called Circle Wrapped Bitcoin, or cirBTC, on the Ethereum blockchain. The move lets institutions use Bitcoin in Ethereum-based decentralized finance applications while keeping the underlying BTC in secure custody.

Each cirBTC token is fully backed 1:1 by native Bitcoin. Those reserves are held by a regulated Circle entity, separate from the company’s own corporate assets. This structure is meant to give institutional users access to DeFi tools like lending, trading, and settlement without needing to sell their Bitcoin holdings.

Bringing Bitcoin Collateral Into Ethereum DeFi

The launch essentially brings Bitcoin into Ethereum’s large on-chain financial ecosystem, where platforms like lending protocols, decentralized exchanges, and stablecoin markets are already widely used. For institutions involved in treasury management or settlement, cirBTC can now be used in supported third-party protocols. It’s a way to keep exposure to Bitcoin while still participating in Ethereum-based finance.

Transparency Through Chainlink Proof of Reserve

Circle said reserve transparency will be supported using Chainlink, a blockchain data and oracle network. Through Chainlink’s Proof of Reserve service, market participants can independently verify that the Bitcoin backing cirBTC actually exists. This is done via on-chain data and public blockchain records, which helps build trust for institutions that might be wary of wrapped assets.

Integration With Circle Mint and Future Plans

cirBTC is already integrated with Circle Mint, the company’s institutional minting and redemption platform. Circle also plans to expand the asset beyond Ethereum over time, possibly including support within Arc, its infrastructure initiative focused on stablecoin-based financial services. For now, the focus remains on Ethereum, but the longer-term vision seems to be about making cirBTC available on multiple chains.

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