Circle Enters Wrapped Bitcoin Market with Regulated cirBTC

Circle has launched cirBTC on Ethereum, a new wrapped Bitcoin asset that offers institutional investors a regulated and transparent way to access Bitcoin liquidity in decentralized finance (DeFi) markets.

The cirBTC token is backed 1:1 by Bitcoin held in segregated custody and uses Chainlink Proof of Reserve for reserve transparency. This means that users can verify the reserves backing the token, reducing trust risks associated with wrapped Bitcoin assets.

Circle's entry into the wrapped Bitcoin market could boost DeFi adoption across lending, decentralized exchange (DEX) pools, and collateral markets. The company already has a strong stablecoin infrastructure and institutional relationships, which it can leverage to bring cirBTC to a wider audience.