Circle launches cirBTC: neutral wrapped BTC on Ethereum

Circle, the issuer of USDC, launched **cirBTC** on June 9 as a 1:1 **BTC-backed ERC-20** on **Ethereum**. The token is designed for institutional DeFi use, letting users gain **wrapped BTC** exposure without selling underlying **BTC**. cirBTC targets the synthetic BTC market (about $12.5B–$13.5B) and directly challenges **WBTC** and Coinbase’s **cbBTC**. **How cirBTC works:** users deposit **BTC** and receive an equivalent Ethereum token, with redemption back to BTC available at any time. Circle says the BTC collateral is held in **segregated custody** with dedicated accounts. **Reserve verification:** cirBTC uses **Chainlink Proof of Reserve** to provide ongoing, independent onchain visibility into the BTC backing the token. **Rollout details:** by mid-August 2026 it supports minting, redeeming, and reserve management globally, with no public trading/circulating figures emphasized at launch. A key next milestone is **Arc mainnet** on September 16, 2026, which Circle expects to expand cirBTC’s DeFi utility. **Trading angle:** cirBTC could increase Ethereum-native BTC collateral availability, potentially supporting demand for wrapped BTC instruments and improving liquidity for institutional strategies. Watch for relative flows and spreads versus **WBTC** and **cbBTC** as onchain usage develops.