Circle, the issuer of the USDC stablecoin, has launched cirBTC on Ethereum, introducing a wrapped bitcoin token designed to bring bitcoin-backed collateral into decentralized finance markets while maintaining 1:1 backing with native BTC.
The launch, announced via an X post on Monday, expands Circle’s product suite beyond stablecoins and gives institutional market participants a new way to use bitcoin across lending platforms, trading venues, treasury operations, and settlement workflows without moving native BTC directly onto Ethereum.
According to Circle, cirBTC is backed one-for-one by bitcoin held by a regulated Circle entity and segregated from the company’s corporate assets.
Bitcoin collateral enters Ethereum’s financial ecosystem
Bitcoin remains the largest cryptocurrency by market capitalization, but its native blockchain does not support Ethereum-based smart contracts.
Wrapped bitcoin products address that limitation by issuing tokens backed by BTC reserves, allowing holders to deploy bitcoin value across Ethereum’s decentralized finance ecosystem.
With cirBTC now live on Ethereum, institutions can use bitcoin-backed collateral in supported third-party DeFi applications while retaining exposure to the underlying asset rather than selling their BTC holdings.
Circle said the launch targets market participants operating across lending protocols, over-the-counter trading, liquidity provision, treasury management, and settlement infrastructure.
Reserve transparency built into the design
A key feature of cirBTC is its reserve verification model. Circle said the token is designed to provide visibility into backing reserves through Chainlink Proof of Reserve. The system enables counterparties to verify Bitcoin holdings directly on the Bitcoin blockchain through multiple reserve addresses.
The company said this structure is intended to give trading firms, protocols, and risk managers ongoing visibility into collateral reserves in markets that operate continuously.
Circle positions cirBTC as neutral market infrastructure
Circle also emphasized what it describes as a neutral operating model for cirBTC. Unlike some digital asset firms, Circle does not operate a centralized exchange, a decentralized exchange, or a lending protocol. The company argues that this reduces potential conflicts of interest when institutions use cirBTC across different venues and counterparties.
The token is issued by Circle International Bermuda Limited, a digital asset business licensed and regulated by the Bermuda Monetary Authority.
The launch also connects cirBTC to Circle’s broader institutional product stack. Through Circle Mint, eligible institutions can mint and redeem cirBTC using established onboarding and settlement workflows.
The company said this creates a framework where bitcoin collateral and dollar-denominated liquidity products, including USDC, can operate within the same infrastructure. The approach is aimed at institutions that already rely on Circle’s services for custody, settlement, and digital asset operations.
Circle’s quantum computing roadmap extends beyond stablecoins
The cirBTC launch comes as Circle expands its focus on long-term blockchain infrastructure resilience. On May 31, the company published a post-quantum security roadmap outlining how it plans to prepare USDC and its broader ecosystem for the eventual emergence of quantum computers capable of breaking current public-key cryptography standards.
Circle said the initiative will cover multiple parts of its infrastructure, including the upcoming Arc blockchain, USDC smart contracts, validator networks, wallets, custody systems, and internal security architecture. The company outlined a phased migration strategy designed to transition gradually from existing cryptographic standards while maintaining compatibility with current blockchain networks.
The roadmap highlights Circle’s broader effort to position its digital asset infrastructure, including newer products such as cirBTC, for future institutional adoption and evolving security requirements.
Ethereum launch marks first step toward multichain expansion
Circle said Ethereum was selected as the first network because it remains the largest hub for institutional DeFi activity, tokenized assets, and on-chain liquidity. The company added that cirBTC is intended to expand beyond Ethereum over time as part of a broader multichain strategy.
Circle specifically referenced future integration with Arc, its upcoming blockchain infrastructure initiative focused on stablecoin-based financial applications.
The launch comes as institutional interest in tokenized assets, on-chain collateral, and blockchain-based settlement continues to grow, with firms increasingly exploring ways to use bitcoin beyond simple custody while maintaining reserve transparency and regulated oversight.
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