- Circle announced the launch of cirBTC.
- It is a wrapped bitcoin available on the Ethereum network.
- The asset is aimed at institutions that want simple access to DeFi via Circle’s infrastructure.
Circle, the issuer of the USDC stablecoin, unveiled cirBTC, a wrapped bitcoin on the Ethereum network. The asset is positioned as a practical extension of the leading cryptocurrency’s capabilities, aimed at institutional counterparties.
cirBTC is fully backed by bitcoin at a 1:1 ratio. Issuance and redemption are handled by Circle Mint, a Circle subsidiary. The bitcoin remains under Circle’s control, but is held separately from corporate funds.
By using cirBTC, institutional counterparties can access DeFi without needing to sell their crypto assets. Monitoring and audits are carried out via Chainlink’s Proof of Reserve system.
At the same time, Circle positions cirBTC not simply as another version of wrapped bitcoin, but rather as access to its own infrastructure for organizations that are interested in lending and market making while investing in the leading cryptocurrency.
At the initial stage, the asset will be available on only one network — Ethereum. Later, support will be added on Circle’s own Layer 1 blockchain called Arc.
With the launch of cirBTC, Circle has effectively entered a competitive battle for market share in the synthetic bitcoin market with the Coinbase exchange (cbBTC) and BitGo Holdings (WBTC).
Previously, BiT Global, linked to BitGo Holdings, even tried to sue Coinbase over the delisting of WBTC. However, it ultimately withdrew the lawsuit.