- Circle’s cirBTC is backed 1:1 by native Bitcoin held with Circle National Trust for the exclusive benefit of holders.
- Chainlink Proof of Reserve will provide real-time verification, while multi-address transparency enables onchain BTC checks.
- cirBTC launches on Ethereum first, with planned Arc support for institutional borrowing, lending, trading and settlement.
Circle has introduced cirBTC as a wrapped bitcoin product for institutional markets, with 1:1 BTC backing and onchain reserve checks. The company said the structure directly supports institutions using Bitcoin as collateral across broader onchain credit markets. It said cirBTC will not compete through a CEX, DEX, or lending protocol.
Circle Sets Out cirBTC Structure
Circle said each cirBTC is backed by native Bitcoin on a one-to-one basis. The BTC is held through Circle’s Bermuda affiliate and custodied by Circle National Trust. Circle National Trust is a national trust bank and qualified custodian under OCC supervision. The BTC remains for the exclusive benefit of cirBTC holders.
Circle said Chainlink Proof of Reserve will provide real-time onchain reserve verification. Multi-address transparency will also let counterparties check Bitcoin holdings through block explorers.
Bitcoin holders can use wrapped BTC when accessing markets built on smart contract networks. Those markets include lending protocols, collateral systems, trading venues, and settlement workflows.
cirBTC Targets Onchain Credit Markets
According to Circle, cirBTC is designed for market makers, OTC desks, lending protocols, asset managers, and institutional trading firms. The wrapper determines how institutions hold, verify, redeem, and move Bitcoin collateral. Circle said its issuer model avoids operating a competing CEX, DEX, or lending protocol.
The company instead described cirBTC as infrastructure for different venues and protocols. Circle cited USDC circulation above $75 billion and more than $20 trillion in transaction volume during Q1 2026. The company has also developed Circle Mint and CCTP for its broader digital asset infrastructure.
Ethereum Launch Comes Before Arc Support
cirBTC is currently available on Ethereum, while Arc support is expected later, subject to regulatory approvals. On Ethereum, the product can operate within existing DeFi liquidity and institutional workflows.
On Arc, Circle plans to use cirBTC across borrowing, lending, trading, and settlement activity. The company is also building Arc alongside USDC, Circle Mint, and CCTP infrastructure.
Circle said the design supports multiple chains rather than limiting cirBTC to Ethereum or Arc. The company listed reserve visibility, custody, and redemption among the product’s core features.
