Circle launches cirBTC, 1:1 Bitcoin token for DeFi on Ethereum and Arc

Circle unveils cirBTC, a 1:1 Bitcoin wrapper for DeFi. The token launches on Ethereum and Circle’s Arc, with more chains to follow.

Circle says cirBTC is backed 1:1 by BTC and verifiable on-chain, and is built to work with Circle’s infra and the broader DeFi stack according to its announcement. The goal is to bring Bitcoin into lending, borrowing, and liquidity protocols without the trust gap seen in other wrappers Coinspeaker reports.

Rachel Mayer cites the core blocker as “trust in the wrapper,” noting $1.7T of bitcoin sits on the sidelines of DeFi today per her post.

What matters for investors
- 1:1 backing and on-chain verification aim to reduce counterparty risk vs competing wrapped BTC Circle.
- Initial deployment on Ethereum and Arc targets immediate DeFi composability; more chain integrations are planned Coinspeaker. First use cases include lending, borrowing, and liquidity Coinspeaker.
- cirBTC is not yield-bearing. Any yield comes from where holders deploy it in DeFi, unlike Circle’s USYC product Coinspeaker.
- Arc is designed for gasless UX with USDC-denominated fees and paymaster support, easing retail and institutional flow into wrapped BTC strategies Coinspeaker.
- Circle positions cirBTC to interoperate with the same infra that supports USDC and EURC across DeFi Circle.

Where it will live
- Launch chains: Ethereum (ETH) and Arc Coinspeaker.
- Paymaster support extends USDC gas to external chains including Ethereum, Polygon, and Solana Coinspeaker.

Context
- Circle is expanding beyond dollar stablecoins into BTC infrastructure, aiming to provide “neutral” plumbing for on-chain BTC settlement rather than a yield product it controls Coinspeaker.
- The thesis: demand exists, but perceived wrapper risk blocks BTC from DeFi. cirBTC targets that gap with Circle’s custody and verification approach Rachel Mayer, Circle.