Circle has introduced cirBTC, a new 1:1 Bitcoin-backed token on Ethereum. The product targets institutional users seeking collateral for DeFi activities.
Circle unveiled cirBTC on June 9 as a token backed one-to-one by native Bitcoin. The asset is designed for use in lending, decentralized exchanges, and tokenized asset markets. The launch positions Circle against Coinbase's cbBTC and the incumbent WBTC. Circle links the token to its existing USDC infrastructure and Circle Mint platform for issuance and redemption. Synthetic Bitcoin tokens now represent a combined market of 12.5 to 13.5 billion dollars. Circle aims to attract institutions already familiar with its stablecoin operations. The company has stated that reserves will be segregated and verifiable onchain. Planned support includes future expansion to Arc and other networks.
