Circle is launching cirBTC, a wrapped Bitcoin token designed to expand Bitcoin’s use across decentralised finance and institutional applications.
The token will be backed one-to-one with native Bitcoin and initially deployed on Ethereum and Circle’s Arc blockchain, enabling integration with smart contracts and DeFi protocols.
“Bitcoin is sitting on the sidelines of DeFi… cirBTC is Circle's answer: 1:1 backed, on-chain-verifiable, and built on infrastructure the market already trusts,”
Said Circle VP of product, Rachel Mayer.
Circle said the product aims to address trust concerns around existing wrapped Bitcoin solutions while allowing users to deploy BTC in lending, borrowing and other on-chain activities.
The launch positions cirBTC against established competitors including BitGo’s Wrapped Bitcoin and Coinbase’s cbBTC, both of which have faced controversy around custody and centralisation.
Wrapped Bitcoin products enable BTC holders to access DeFi ecosystems beyond the native Bitcoin network, increasing liquidity and utility across multiple blockchains.
Circle shares closed down 0.53% at around $90.26, extending a roughly 40% decline over the past six months.
At the time of reporting, Bitcoin price was $66,949.66.