Circle Introduces cirBTC with Real-Time Onchain Reserve Verification
- Circle has announced cirBTC, a wrapped Bitcoin token, fully collateralized by native Bitcoin held in reserve.
- The reserves for cirBTC will be independently verifiable onchain in real-time, ensuring transparency without third-party attestations.
- cirBTC is designed for multichain use, launching first on Ethereum and Arc, Circle’s Layer-1 blockchain.
- Targeted at institutions like OTC desks and market makers, cirBTC aims to address custody risk and transparency issues in the wrapped Bitcoin space.
- Circle’s existing regulatory framework supports cirBTC, with various licenses including a Virtual Currency Business Activity license in New York.
Circle’s introduction of cirBTC marks its expansion beyond stablecoins into tokenized Bitcoin infrastructure, offering a transparent alternative for institutional users wary of existing wrapped Bitcoin products due to custody risks and lack of transparency.
With over $1.7 trillion in Bitcoin outside DeFi, Circle aims to bridge trust gaps by leveraging its compliance model for real-time reserve verification and broad liquidity across multiple chains. (Source)
