Circle has introduced cirBTC, a wrapped Bitcoin product designed for institutional markets, backed on a 1:1 basis by native Bitcoin held by Circle National Trust for the exclusive benefit of holders. The product enters a market where WBTC has long dominated wrapped Bitcoin on Ethereum, and where institutional demand for transparent, regulated custody of tokenized BTC collateral has grown alongside the expansion of onchain credit markets.

Chainlink Proof of Reserve will provide real-time onchain reserve verification, while multi-address transparency allows counterparties to verify Bitcoin holdings directly through block explorers.

cirBTC is currently available on Ethereum, with planned support for Circle's Arc platform to enable institutional borrowing, lending, trading, and settlement once regulatory approvals are secured.

cirBTC Structure and Custody

Each cirBTC token is backed by native Bitcoin on a one-to-one basis. The underlying BTC is held through Circle's Bermuda affiliate and custodied by Circle National Trust, a national trust bank and qualified custodian under the supervision of the Office of the Comptroller of the Currency (OCC). The reserves remain exclusively for the benefit of cirBTC holders. The use of an OCC-supervised national trust bank distinguishes cirBTC's custody model from merchant-controlled arrangements used by some existing wrapped Bitcoin products.

Circle stated that Chainlink Proof of Reserve will deliver real-time onchain verification of reserves. In addition, multi-address transparency enables market participants to independently audit Bitcoin holdings via public block explorers.

Wrapped Bitcoin allows holders to access smart contract-based markets, including lending protocols, collateral systems, trading venues, and settlement workflows.

Targeting Onchain Credit Markets

According to Circle, cirBTC is built for market makers, OTC desks, lending protocols, asset managers, and institutional trading firms. The product defines how institutions hold, verify, redeem, and transfer Bitcoin collateral across onchain credit markets.

Circle emphasized that its issuer model does not involve operating a competing centralized exchange (CEX), decentralized exchange (DEX), or lending protocol. Instead, the company described cirBTC as infrastructure intended to support multiple venues and protocols. This positions cirBTC as a complement to existing DeFi platforms rather than a competitor, with integration into lending and trading venues likely to determine its institutional adoption trajectory.

Circle cited its existing digital asset infrastructure footprint, including USDC circulation exceeding $75 billion and more than $20 trillion in transaction volume during Q1 2026. The company has also developed Circle Mint and the Cross-Chain Transfer Protocol (CCTP) as part of its broader institutional infrastructure.

Ethereum Launch Precedes Arc Integration

cirBTC is live on Ethereum, where it can operate within existing DeFi liquidity pools and institutional workflows. On Arc, Circle plans to deploy cirBTC for borrowing, lending, trading, and settlement activities. The company is developing Arc alongside USDC, Circle Mint, and CCTP. Arc's regulatory approval timeline and the breadth of venue integrations will be key signals for whether cirBTC can capture meaningful institutional Bitcoin collateral flow.

Circle stated that cirBTC's architecture is designed to support multiple blockchains rather than being limited to Ethereum or Arc. The company identified reserve visibility, custody, and redemption as core features of the product.