Circle Launches cirBTC on Ethereum to Expand Institutional DeFi Access

Circle, the issuer of the world’s second-largest stablecoin, USDC, has launched cirBTC, a wrapped Bitcoin that allows BTC holders to interact directly with smart contracts. Launched on June 8th, 2026, cirBTC primarily focuses on institutional participants operating lending protocols, OTC workflows, market making, treasury operations, and settlement.

Backed by 1:1 native Bitcoin, cirBTC is interoperable, and its reserves can be verified in real time. Circle uses its own FiatTokenV2_2 contract architecture for cirBTC, the same framework for USDC and EURC, increasing trustworthiness because the code has already been extensively tested and audited. The token is now launched on Ethereum and Circle’s own blockchain ecosystem, Arc.

What is cirBTC? How Does it Work? Full Details

Token Name	Circle Wrapped Bitcoin
Token Ticker (Symbol)	cirBTC
Issuing Authority	Circle International Bermuda Limited (CIBL)
Standard	ERC-20
Decimals	8
Ethereum Contract Address	0x72DFB2E44f59C5AD2bAFE84314E5b99a7cd5075E
Arc Contract Address	0x171A4217b86A807A64eB94757Db6849fb4bDbAA0

cirBTC is a wrapped Bitcoin that enables BTC holders to integrate Bitcoin into an Ethereum-compatible environment, allowing them to engage with smart contracts and DeFi applications without selling their BTC. The token can be used for lending, borrowing, DEX trading, and various other payment operations. Major features of the token include:

Enhanced Smart Contract Architecture

The administrative roles of the smart contracts are protected by Circle’s cold storage key management systems, adding an extra layer of security and not allowing a single entity to control the roles. The contracts are divided into FiatTokenV2_2 (for minting, burning, and transferring), FiatTokenProxy (for upgradability), and MasterMinter (for managing minting allowances and key roles).

Proof of Reserves

The real strength of cirBTC lies in its Chainlink Proof of Reserve integration that allows institutions to independently verify the reserves in real-time directly on the Bitcoin blockchain. It includes an automated verification mechanism and a safety “ripcord” to ensure smooth functionality.

Multichain Strategy

While the initial launch is on Ethereum and Arc, Circle will expand the number of chains soon, allowing seamless interoperability across various ecosystems. Since Circle does not have its own exchange, investors can freely use cirBTC as collateral on any supported crypto exchanges.

DeFi Compatibility

As a standard ERC-20 token, cirBTC can be used in all DeFi applications, including decentralized exchanges, oracle-supported protocols, and lending protocols. It enables liquid trading pairs on DEXs through permissionless listing.

Security Measures

Similar to other projects of Circle, cirBTC has a layered security architecture to keep the integrity of the smart contracts and to protect the BTC reserves. It employs strict security practices such as audited contracts, blocklist enforcement, and comprehensive monitoring.

Regulatory Compliance

Circle frames cirBTC as a regulated wrapped Bitcoin because minting and redemption are restricted to verified users who have completed KYC and AML checks. Also, the reserves are built under a regulated Bermuda framework. 

How to Use cirBTC? The Minting & Burning Process Explained

BTC holders can deposit their assets into Circle’s reserve to receive an equal amount of cirBTC through the minting process. When the use is over, they can burn the cirBTC and release the underlying Bitcoin from Circle’s reserve. Let’s detail the process in simple terms.

Minting cirBTC

• You deposit your asset (example: 1 BTC) to a Circle-provided deposit address.
• Circle transfers the BTC to the reserve after the confirmation.
•  Circle mints 1 cirBTC on-chain and transfers it to your designated wallet address. You’re free to use it now.

Burning cirBTC

• You transfer your 1 cirBTC back to your Circle account. 
• Circle burns the cirBTC, permanently removing it from the blockchain.
• Circle releases your 1 BTC from its reserve and transfers it into your wallet address.

The Bottom Line: Circle Challenges BitGo’s wBTC and Coinbase’s eBTC

The first wrapped Bitcoin, wBTC, was jointly launched by BitGo, Kyber Network, and Ren (formerly Republic Protocol) in January 2019. wBTC’s higher position was challenged when Coinbase launched its eBTC in November 2024. While several other wrapped Bitcoin projects have emerged in recent years, wBTC and eBTC dominate the market. However, their dominance is now challenged by the arrival of Circle’s cirBTC.

Various blockchain experts and crypto enthusiasts expect cirBTC to establish itself as a prominent wrapped Bitcoin project that can invite global institutions to the token in the coming years. You can read the full whitepaper of Circle here: