Circle Launches 1:1 BTC-Backed cirBTC Token on Ethereum and Arc
Circle has unveiled cirBTC, a wrapped Bitcoin token fully backed 1:1 by native on-chain Bitcoin reserves, launching on Ethereum mainnet and Arc with integration into the USDC and Circle Mint platforms. Circle shares closed down 0.53% at $90.26, extending a near 40% decline over the past six months.
1. cirBTC Launch Details
Circle has introduced cirBTC, a wrapped Bitcoin token backed 1:1 by native Bitcoin reserves. The token is designed to provide institutional users with on-chain-verifiable BTC exposure, enabling lending, borrowing, and participation in decentralized finance protocols.
2. Integration with Circle Ecosystem
cirBTC will launch on Ethereum mainnet and on Arc, Circle’s stablecoin-focused blockchain, with seamless integration into USDC and the Circle Mint issuance platform. This unified infrastructure aims to leverage Circle’s existing full-stack flexibility to attract institutions.
3. Competitive Landscape
cirBTC enters a market led by BitGo’s WBTC ($8 billion market cap) and Coinbase’s cbBTC ($6 billion market cap). Circle positions cirBTC as a neutral, fully transparent alternative to address trust concerns around existing wrapped Bitcoin solutions.
4. Stock Performance and Outlook
Following the announcement, Circle shares closed at $90.26, down 0.53% on the day and nearly 40% over six months. Investors will monitor adoption metrics for cirBTC and potential revenue growth from expanded DeFi engagement.