Circle launched a new cross-chain asset on Ethereum that is backed by BTC on a 1:1 basis. The new wrapped token is designed for institutional use across DeFi protocols and traditional financial applications.
The team behind USDC issuer Circle announced the launch of Circle Wrapped Bitcoin (cirBTC), a wrapped token based on Bitcoin that operates on the Ethereum network. The launch expands Bitcoin’s utility within the ecosystem of the largest altcoin. BTC holders can use the asset as collateral in supported protocols without having to sell the underlying asset.
Circle International Bermuda Limited, a company licensed by the Bermuda Monetary Authority (BMA), serves as the issuer of the wrapped token. Every cirBTC token is fully backed by BTC at a 1:1 ratio. The reserves will be held by a regulated Circle entity and segregated from the company’s corporate assets.
To enhance transparency, Circle also integrated Chainlink Proof of Reserve, a mechanism that allows market participants to track the underlying assets on the Bitcoin blockchain and independently verify reserves.
cirBTC will also be integrated into Circle’s ecosystem of services. Minting and redemption will be available through the Circle Mint platform, while interoperability with USDC will allow institutional clients to combine Bitcoin-backed collateral with dollar liquidity within a single operating model.
The company emphasized cirBTC’s strategic neutrality for institutional markets. In the announcement, Circle noted that it doesn’t operate its own centralized or decentralized exchange and doesn’t control lending protocols. According to the company, this reduces potential conflicts of interest for market participants using the token.
Circle also announced plans to expand cirBTC to additional blockchain networks. The token is expected to be integrated with Arc, Circle’s infrastructure platform for scalable and regulated stablecoin-based financial services. The expansion is intended to support the use of BTC-backed assets across new on-chain capital and lending markets.
Circle first announced plans to launch a wrapped token for institutional market participants in April 2026.
