Circle has launched cirBTC, a wrapped Bitcoin token on Ethereum backed 1:1 by native BTC held at a regulated Circle entity and segregated from corporate assets. Reserves are verifiable on-chain through Chainlink Proof of Reserve.

cirBTC targets institutional users seeking BTC collateral across lending markets, OTC workflows, market making, and treasury operations. The design allows native BTC to remain in custody while cirBTC circulates through DeFi. The token competes directly with Coinbase's cbBTC, which backs USDC loans on Base through Morpho and stepped in after Coinbase suspended WBTC trading.

As with other centralized wrapped tokens, cirBTC carries censorship risk. Circle has frozen USDC balances on demand before, including during the Tornado Cash sanctions, and cirBTC inherits the same structural vulnerability.

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