Circle Introduces cirBTC for Institutional Exposure to DeFi

Circle has entered the Bitcoin market with cirBTC, a new institutional solution that allows investors to gain exposure to DeFi without custody risks. This ERC-20 token is backed by Bitcoin and stored on the Ethereum network, providing a secure way for institutions to interact with Bitcoin.

The launch of cirBTC marks a significant milestone in the world of cryptocurrency, as it competes directly with established wrapped Bitcoin products like WBTC and cbBTC in an impressive market valued between $12.5 billion to $13.5 billion. To ensure the safety of its Bitcoin reserves, cirBTC employs segregated custody, where the backing Bitcoin is stored in dedicated accounts.

The reserve verification for cirBTC is undertaken through Chainlink's Proof of Reserve, which verifies the legitimacy of the Bitcoin reserves in real-time on the Ethereum blockchain. This innovative product leverages the robust frameworks established for USDC and EURC stablecoins.