• Circle plans to roll out cirBTC, a 1:1 backed wrapped Bitcoin product offering real-time on-chain verification and institutional-grade transparency.
• The launch targets professional users, including OTC desks and market makers.
• Circle aims to launch cirBTC on the Ethereum and Arc blockchains, with plans to expand to multiple chains over time.

Circle unveiled plans to launch cirBTC, a wrapped Bitcoin product that aims to provide institutional-grade transparency and utility to the top crypto, according to a Thursday statement.

The move marks Circle's first venture beyond stablecoins into tokenized Bitcoin infrastructure. cirBTC will be fully backed 1:1 by native Bitcoin held in reserves, with real-time on-chain verifiability.

Circle to launch cirBTC on Ethereum and Arc with $1.7 trillion opportunity

crBTC will initially launch on the Ethereum mainnet and Circle's Arc Layer 1 blockchain, with broader multichain support planned for enhanced interoperability.

Circle highlighted that the Bitcoin market has significant potential for DeFi applications, pointing to an estimated $1.7 trillion of Bitcoin sitting on the sidelines of DeFi.

"$1.7T of Bitcoin is sitting on the sidelines of DeFi. Not because people don't want yield or liquidity, it's because they don't trust the wrapper," Rachel Mayer, product lead at Arc and Circle, explained.

She emphasized that cirBTC is designed to address this issue by being fully backed, verifiable on-chain, and built on trusted infrastructure.

The product is aimed at professional users, including over-the-counter (OTC) desks, market makers, and lending protocols, who are seeking secure, programmable Bitcoin exposure. 

cirBTC will integrate natively with Circle's ecosystem, including trading pairs with USDC and Circle Mint for issuance and redemption. The reserves supporting the product will follow the same transparent model that has contributed to USDC's dominance in the stablecoin market.

"We are bringing the same infrastructure that supports USDC to the largest digital asset, creating a neutral infrastructure for new applications for on-chain BTC," Circle CEO Jeremy Allaire shared in a Thursday X post.

While it has yet to set a launch date, Circle has made a product page available for institutions to join a waitlist or contact the company directly.