Arc Integrates Circle Wrapped Bitcoin as Collateral Layer

Arc's ecosystem has expanded its stablecoin offerings with the addition of Circle Wrapped Bitcoin (cirBTC) as a collateral layer. cirBTC is backed by actual Bitcoin, providing users with a way to put their BTC to work within Arc's ecosystem without converting it first.

The token went live on the Arc network on September 21, 2026, and offers 1:1 backing by real BTC held in reserve. Users can convert from BTC, cbBTC, or wBTC into cirBTC with no fees on select flows, accessing the token through Arc's native portal for swaps and bridges.

Morpho, one of the first lending protocols to integrate cirBTC, reported more than $150M in deposits into its USDC and EURC vaults on the first day. Aave V4 also quickly opened cirBTC markets, along with USDC and EURC, on Arc almost simultaneously.

The segregated custody model, regulatory wrapper from Bermuda, and Chainlink proof-of-reserves integration aim to provide institutions with Bitcoin exposure in DeFi while meeting compliance and auditability requirements.