Circle launches Bitcoin backed cirBTC token on Ethereum

Financial technology company Circle has launched a new tokenized version of Bitcoin on the Ethereum network, aiming to expand the use of the cryptocurrency as collateral in institutional decentralized finance markets. The product, called cirBTC, is now live and is backed one-to-one by Bitcoin held in regulated custody.

Each cirBTC token is fully collateralized by an equivalent amount of native Bitcoin, which is held by a regulated Circle entity and kept separate from the company's corporate assets. The launch is designed to allow institutions to utilize their Bitcoin holdings within Ethereum's smart contract ecosystem for activities like lending, market making, over-the-counter trading, and settlement without having to sell the underlying asset.

Circle stated that the product is built with a focus on institutional participants who may already be familiar with the company through its widely used USDC stablecoin. A key feature highlighted by the company is continuous reserve transparency provided through integration with Chainlink Proof of Reserve. This system allows counterparties to independently verify the Bitcoin backing through multiple wallet addresses visible on the Bitcoin...