Nikolas Sargeant
TL;DR
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Circle has unveiled plans to launch cirBTC, a highly secure and neutral version of wrapped BTC.
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The token will be backed 1:1 by Bitcoin and first issued on the Ethereum mainnet and Arc Layer 1.
Circle Unveils Plans to Launch a Wrapped Bitcoin Token
Circle Internet Group, the issuer of the USDC stablecoin, has unveiled plans to launch wrapped Bitcoin tokens. This is according to the information available on its website.
Similar to wrapped bitcoin tokens, cirBTC will be backed 1:1 by actual BTC and designed to provide more utility for the first and largest cryptocurrency.
The company stated that cirBTC is designed to provide institutions with a highly secure and neutral version of wrapped BTC.
Circle added that the wrapped Bitcoin will be fully integrated with its existing tech stack, including its bespoke Layer 1 blockchain Arc and the Circle Mint stablecoin redemption and issuance platform.
Furthermore, cirBTC will launch first on the Ethereum mainnet and Arc.
Circle is entering a market that already houses different wrapped BTC tokens, including cbBTC issued by longtime Circle partner Coinbase. However, the company intends to position cirBTC as the “institutional-grade global standard.”
Circle added that cirBTC is well-suited for OTC desks, market makers, lending protocols, and others that require neutral, secure, and high-performance tokenized BTC.
CirBTC is “well-suited for OTC desks, market makers, lending protocols, and others that require neutral, secure, and high-performance tokenized BTC,” Circle wrote.
CirBTC will be one of a few non-stablecoin Circle products. The firm also maintains the USYC yield-bearing tokenized money market fund following its acquisition of Hashnote, and is reportedly looking into launching a native token for its EVM-compatible Arc Layer 1 blockchain, which is expected to mainnet this year.
