Circle Internet Group launched the cirBTC wrapped bitcoin token on the Ethereum network. A regulated Circle entity backs the token 1:1 with bitcoin held in segregated custody. This issuance model mirrors the structure of Circle’s USDC stablecoin.
Circle targets institutional clients including market makers and lending protocols with the new asset. The token allows these institutions to use bitcoin as collateral within the decentralized finance (DeFi) ecosystem.
This launch positions Circle as a direct competitor to Coinbase’s cbBTC and BitGo’s WBTC. Circle utilizes Chainlink’s Proof of Reserve to provide on-chain verification of all underlying bitcoin holdings.
Institutional users can mint and redeem cirBTC through the Circle Mint platform. The company plans to expand the token to additional blockchains in the future via its Arc infrastructure.