Wrapped Bitcoin Expands Utility Across Smart Contract Blockchains

Wrapped Bitcoin (cirBTC) is a tool that allows users to access the utility of their native BTC holdings on multiple smart contract blockchains. Unlike staked or derivative versions, cirBTC is a 1:1 wrapped token that does not pay yield.

This means users can tap into various on-chain markets and applications without having to sell their BTC. For instance, they can use cirBTC as collateral for loans, provide liquidity in decentralized exchanges (DEXs), or participate in on-chain lending markets.

One of the key benefits of cirBTC is that it allows users to access liquidity without selling their BTC position outright. This can be especially useful for institutional investors and market participants who may need to borrow against their holdings while maintaining long-term exposure to BTC.

Circle's Bermuda affiliate holds the underlying BTC in custody, segregated from Circle's corporate assets, providing a clearer basis for evaluating reserve, custody, and redemption risk. The wrapper itself is backed 1:1 by native BTC and can be redeemed for BTC through the applicable Circle Mint workflow.