Circle has officially launched cirBTC on the Ethereum blockchain, introducing a new wrapped Bitcoin token designed to bring Bitcoin into the growing world of decentralized finance (DeFi).
According to Circle, every cirBTC token is backed 1:1 by real Bitcoin held in regulated custody. The company said these Bitcoin reserves are kept separate from its corporate assets, providing additional security and transparency for users.
The new token is aimed primarily at institutional investors, including firms involved in lending, trading, treasury management, settlements, and over-the-counter transactions. With cirBTC, institutions can use Bitcoin as collateral in Ethereum-based financial applications without having to sell their BTC holdings.
To strengthen trust, Circle has integrated Chainlink’s Proof of Reserve system. This allows users and institutions to verify on-chain that the Bitcoin backing cirBTC actually exists and matches the number of tokens in circulation. Reserve holdings can be monitored through publicly visible Bitcoin wallet addresses.
The launch places Circle in direct competition with other major wrapped Bitcoin providers. The market is currently dominated by Wrapped Bitcoin (WBTC), which has a market value of around $8 billion. Other competitors include Coinbase Wrapped Bitcoin, Kraken Wrapped BTC, Binance Wrapped BTC, Bitget Wrapped BTC, and OKX Wrapped BTC.
Circle says its approach is different because it does not operate a centralized exchange, decentralized exchange, or lending platform. The company believes this allows institutions to use cirBTC across different markets and liquidity providers without concerns about competing with the token issuer.
The company also confirmed that cirBTC can be minted and redeemed through Circle Mint, its platform for institutional digital asset management. Circle says combining cirBTC with USDC could allow institutions to manage Bitcoin collateral and dollar liquidity within the same ecosystem.
Ethereum is the first network to support cirBTC because much of the institutional DeFi and tokenization activity already takes place there. However, Circle plans to expand the token to additional blockchains through its Arc infrastructure, creating broader access to Bitcoin-backed collateral across multiple networks.
With the launch of cirBTC, Circle is making a major push into the wrapped Bitcoin market as demand continues to grow for regulated, transparent, and institution-friendly digital asset products.
