Circle Unveils cirBTC, a Wrapped Bitcoin Token with Verifiable Backing

Circle has launched Circle Wrapped Bitcoin (cirBTC), a token that allows native Bitcoin to be used on programmable networks. The new token is live on Ethereum, with plans for native support on Circle's Arc layer-1 blockchain once its mainnet launches.

The backing of cirBTC is structured to ensure it remains one-to-one with native Bitcoin. This means that every cirBTC token can be redeemed for a corresponding amount of BTC, and the underlying BTC is held in segregated custody through a Circle affiliate and custodied by Circle National Trust, a federally chartered national trust bank supervised by the Office of the Comptroller of the Currency.

Circle pairs segregated custody with observable backing using Chainlink Proof of Reserve. This connects three data points: native BTC held in disclosed reserve addresses, onchain reserve value published through Chainlink Proof of Reserve, and the circulating cirBTC supply across supported chains. This ensures that tokens in circulation do not exceed the BTC held in reserve.