Circle Unveils Wrapped Bitcoin Token to Unlock Institutional DeFi Access

Circle has announced plans to launch cirBTC, a wrapped Bitcoin token that will enable the use of Bitcoin in decentralized finance (DeFi) beyond the BTC network.

The new token will be backed by native Bitcoin reserves and built for interoperability, allowing it to seamlessly interact with various blockchain networks. This move aims to address concerns around existing wrappers, which have been a major hurdle for institutional investors looking to participate in DeFi.

CirBTC will launch on the Ethereum network and Circle's own EVM-compatible layer 1, Arc, which is purpose-built for stablecoin-native applications. The token will also integrate with USDC, Circle's dollar-backed stablecoin, and its USDC minting service for institutional customers, Circle Mint.

The launch of cirBTC marks a significant step towards making Bitcoin more accessible for yield, liquidity, and broader DeFi use cases. With the backing of native Bitcoin reserves, institutions can now trust their holdings are securely represented in DeFi applications.