Circle, the issuer of the USDC stablecoin, has introduced cirBTC - a tokenized version of Bitcoin, fully backed 1:1 by BTC. The new asset aims to expand the use of Bitcoin in financial operations.
The product is targeted at over-the-counter (OTC) platforms, market makers, lending protocols, and other market participants who need a reliable, fully backed tokenized Bitcoin. cirBTC will be integrated into Circle's ecosystem, including the Arc blockchain and the Circle Mint platform. The launch will initially take place on the Arc and Ethereum networks.
Unlike Circle's core business, cirBTC is not a stablecoin. In addition, the company manages a tokenized money market fund, USYC, and is developing a native token for the Arc network. Circle had previously attempted to pursue Bitcoin payment solutions, but its Circle Pay service was shut down in 2019.