Circle launched cirBTC on April 10, 2026—a 1:1 backed ERC-20 wrapped Bitcoin token on Ethereum. BlackRock custodies native BTC reserves. BTC trades at $73,170 USD per CoinMarketCap.
cirBTC Mechanics
cirBTC functions as an Ethereum ERC-20 token. Users deposit BTC via Circle's Mint platform and receive equivalent cirBTC. Redemption returns native BTC anytime. Fees: 0.1%. Minimum: 0.01 BTC.
Circle issues monthly reserve attestations, like USDC ($34B USD). Trail of Bits audited smart contracts. Chainlink oracles feed BTC prices.
KYC-verified users send BTC to Circle's address. BlackRock custodies it; contracts mint cirBTC. Redemption burns tokens and releases BTC.
Security and Compliance
Circle holds US and EU licenses. BlackRock custody meets institutional standards. Big Four firm attests 1:1 backing monthly.
Trail of Bits checked reentrancy, oracle risks, and upgrades—no issues. Timelocks protect admin functions; multisig controls keys.
KYC/AML suits institutions. USDC users onboard easily for hedge funds and banks.
DeFi Liquidity Boost
cirBTC enables BTC lending, borrowing, and staking in DeFi without sales. Aave and Yearn support it. DeFi TVL: $120B USD on April 10 per DefiLlama.
Uniswap V3 provides cirBTC liquidity. Institutions prefer its compliance. JPMorgan forecasts 20% DeFi growth from wrapped assets in 2026.
Aave offers 4.2% APY to suppliers, 5.8% to borrowers. Yearn vaults optimize yields.
Trading Enhancements
Bridges link cirBTC to Solana, Base, Polygon, Arbitrum via LayerZero, Wormhole. DEX volume: $15B USD, up 5% per Dune Analytics.
Curve lists cirBTC-USDC pools. Balancer enables custom ratios. dYdX offers cirBTC perpetuals up to 20x margin. Lyra options: 0.5% spreads.
Compound and MakerDAO accept cirBTC collateral (MakerDAO: 150% ratio; Compound: 3.5% APY). Arbitrage spans chains.
Competitors
WBTC leads with $12B USD supply per DefiLlama. cbBTC: $1.2B USD. cirBTC starts with $500M USD commitments.
| Wrapper | Supply (USD) | Custodian | Compliance | Launch Year |
|---|---|---|---|---|
| WBTC | $12B | Multiple | Partial | 2019 |
| cbBTC | $1.2B | Coinbase | High | 2025 |
| cirBTC | $500M | BlackRock | Full | 2026 |
Circle leverages USDC's 60% stablecoin share for adoption.
Institutional Adoption
Hedge funds earn 4-6% APY in cirBTC pools. Goldman Sachs tests prime brokerage. Fidelity eyes crypto funds. Messari predicts $5B USD Q2 inflows.
BNY Mellon considers cirBTC for treasuries. Visa partnership aids fiat ramps.
Regulatory Impact
SEC favors compliant wrappers post-ETFs. cirBTC dodges security risks. EU MiCA aligns.
BTC holds at $73,170 USD; Fear & Greed Index rose to 22 per Alternative.me. VanEck sees $50B USD wrapped BTC by 2027; cirBTC targets 15%.
Roadmap
cirETH launches Q3 2026. Expansions hit Avalanche, Optimism, RWAs. Base TVL ($10B USD) speeds uptake. cirBTC cements Circle's DeFi lead.
