Circle launches 1:1 cirBTC on Ethereum for BTC in DeFi
Circle launched cirBTC on Ethereum, a 1:1 BTC-backed token that lets holders and institutions use bitcoin as collateral in DeFi while reserves are verified by Chainlink.
Circle launched cirBTC on Ethereum, a token backed 1:1 by native bitcoin. The deployment is live and minting and redemption are routed through Circle Mint, the company’s institutional on‑ramp.
Each cirBTC token is backed by an equal amount of native BTC held at a regulated Circle entity and kept segregated from Circle’s corporate balance sheet. At launch the circulating supply stood at roughly 0.0097205 cirBTC across about seven holders, based on on‑chain data.
Native bitcoin cannot interact directly with Ethereum smart contracts. Wrapped tokens such as cirBTC mirror bitcoin’s value and enable use in lending markets, decentralized exchanges, tokenized-asset platforms and stablecoin settlement layers. Circle selected Ethereum as the initial chain because institutional DeFi infrastructure and liquidity are concentrated on that network.
Reserve verification for cirBTC is provided by Chainlink Proof of Reserve. The mechanism lets counterparties and risk desks verify the BTC backing each token directly on the Bitcoin blockchain rather than relying solely on off‑chain attestations.
Circle does not operate an exchange, decentralized exchange or lending protocol. The company described neutral issuance as designed to fit clients that use their own trading venues, liquidity relationships and internal risk policies.
Circle plans to integrate cirBTC with its Arc stablecoin finance infrastructure and to expand the token to additional chains over time. The launch places cirBTC in direct competition with existing wrapped BTC products, including WBTC and Coinbase’s cBTC.
For institutional treasuries, over‑the‑counter desks and market makers, cirBTC allows bitcoin to be used as active collateral in Ethereum‑based protocols without selling the underlying asset. Native BTC remains in segregated custody while cirBTC circulates in the smart contract layer. Circle intends cirBTC to operate alongside USDC to provide combined collateral and liquidity options for customers using its infrastructure.
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