Circle Launches cirBTC with On-Chain Reserve Verification

Circle has launched cirBTC, a wrapped Bitcoin token on Ethereum designed to bring native Bitcoin liquidity into decentralized finance. Each cirBTC token is backed one-to-one by native Bitcoin and uses segregated custody and on-chain reserve verification through Chainlink Proof of Reserve.

This allows users and institutions to monitor the assets supporting tokens in circulation, providing greater transparency around reserves and custody arrangements. The product is institution-focused and aims to reduce concerns related to commingled funds and counterparty exposure.

Circle plans to extend cirBTC to its upcoming Layer 1 blockchain, Arc, following the network's mainnet launch. This could make cirBTC a key component of Circle's broader infrastructure by connecting Bitcoin liquidity with Ethereum, Arc, and potentially other blockchain ecosystems.