Circle, the company behind USDC, has launched cirBTC, a 1:1 Bitcoin-backed ERC-20 token on Ethereum designed specifically for institutional players who want BTC exposure in DeFi without losing sleep over custody questions.
The product went live on June 9, positioning Circle squarely against established wrapped Bitcoin products in a market worth roughly $12.5 to $13.5 billion.
What cirBTC actually does
At its core, cirBTC is a wrapped Bitcoin product. Users deposit BTC, receive an equivalent ERC-20 token on Ethereum, and can redeem it back for the underlying Bitcoin at any time.
The token uses segregated custody for its Bitcoin collateral. The BTC backing cirBTC sits in dedicated accounts rather than getting commingled with other assets.
