Circle plans to launch a wrapped bitcoin token aimed at institutional users, including OTC desks, market makers and DeFi protocols.

Token design and launch

The token, named cirBTC, will be 1:1 backed by Bitcoin and initially issued on Ethereum and Arbitrum, with further multichain support planned.

Circle positions cirBTC for use as both collateral and a settlement asset within institutional workflows and decentralized finance applications.

Target market and features

• Initial chains: Ethereum and Arbitrum, with plans to extend support across additional smart-contract networks to meet institutional integration needs.
• Primary uses: designed for OTC trading desks, market makers and DeFi protocols as collateral and for settlement of large transfers.

Market context

According to Circle, over $1.7 trillion in Bitcoin sits outside DeFi due to institutional distrust of existing wrapped-token solutions.

Circle expects cirBTC to lower frictions for institutions seeking on-chain exposure and to enable larger capital flows into DeFi markets.

Compliance and custody

Details on custody arrangements, attestations and regulatory compliance have not been fully disclosed, but Circle highlights institutional-grade controls and auditability.

The token's rollout schedule and partner list will determine how quickly institutions allocate Bitcoin into on-chain products.