The token will be backed by real bitcoins at a 1:1 ratio. It aims to extend the functionality of digital gold. The issuer has opened registration to a waiting list, writes forklog.com.
“cirBTC is great for OTC platforms, market makers, credit protocols and anyone who needs a neutral, secure and high-performance tokenized bitcoin,” the issuer says on its website.
Circle will fully integrate cirBTC into its technology stack: the Arc blockchain and the Circle Mint platform for issuing and redeeming stablecoins. In the first stage, the asset will be launched on Arc and Ethereum.
“Wrapped” bitcoin will be one of the company’s few non-stablecoin products. The issuer manages the income-generating tokenized money market fund USYC and, according to unofficial reports, is preparing a native token for the Arc network.
There are several “wrapped” versions of bitcoin on the market. The largest of them remains BitGo’s WBTC with a capitalization of over $7.9 billion.
In September 2024, a similar token was launched by the Coinbase exchange. The market value of cbBTC reached $5.9 billion, according to CoinGecko.
To differentiate itself from competitors, Circle is positioning cirBTC as “the global standard of institutional grade.”
