Circle Launches cirBTC On Ethereum As New 1:1 Bitcoin-Backed DeFi Asset
Summary
Circle launched cirBTC on Ethereum, entering the wrapped Bitcoin market and competing with assets like WBTC and cbBTC. cirBTC is backed 1:1 by Bitcoin held in segregated custody, with Chainlink Proof of Reserve added for on-chain reserve verification. The launch aims to address long-standing concerns in wrapped BTC about custody, redemption rights, and transparency. Issuance runs through Circle’s Bermuda-regulated subsidiary, which shapes the product’s legal and compliance profile. If integrations with lending markets, DEXs, and vaults follow, cirBTC could gain traction as an institution-friendly Bitcoin collateral asset in Ethereum DeFi.
