Circle, the company behind the USDC stablecoin, has announced it will soon launch its own Bitcoin token, named cirBTC. Jeremy Allaire, the firm’s CEO, stated that this asset will be backed 1:1 by native Bitcoin reserves, verifiable on-chain. The initiative aims to bridge the “trust gap” that, according to Vice President of Product Rachel Mayer, keeps a large portion of Bitcoin capital on the sidelines of decentralized finance due to the opacity of other issuers.
With the launch of cirBTC, Circle seeks to capture more than $1.7 trillion in Bitcoin liquidity that currently generates no yield. By integrating directly with Circle’s infrastructure and its new Arc blockchain, the token will allow institutions to use BTC in lending protocols and smart contracts with superior transparency compared to current alternatives like WBTC. This deployment will begin on the Ethereum mainnet, positioning itself as a direct competitor to third-party custody solutions that have faced recent controversies.
Circle aims to standardize the institutional use of Bitcoin in the Web3 ecosystem through neutral and auditable infrastructure. The next step for interested parties will be the opening of issuance channels through Circle Mint, once the technical and regulatory integrations planned for this year are completed.
Source:https://x.com/0xrachelita/status/2039739679461826970
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