Circle Launches cirBTC, A Transparent Wrapped Bitcoin Token on Ethereum

Circle has launched cirBTC, its new wrapped Bitcoin token, on Ethereum. This move aims to set a higher standard for transparency and security in tokenized BTC markets.

cirBTC is backed by native BTC, held in segregated accounts at Circle National Trust, a federally regulated custodian. Each cirBTC token's reserves are legally and operationally separate from Circle's corporate assets, addressing concerns about co-mingling and counterparty risk.

The use of Chainlink's decentralized oracle network to publish reserve data directly onchain provides market participants with the ability to verify the BTC reserves via disclosed Bitcoin wallet addresses. This level of transparency is crucial for lending protocols and risk managers who rely on accurate collateral data for pricing and exposure control.