Circle Announces cirBTC, a Wrapped Bitcoin Asset Backed 1:1 by Bitcoin
According to Circle, cirBTC is a wrapped Bitcoin token aimed at institutional markets, backed by 1:1 BTC reserves and planned to launch first on Ethereum and Arc chain.
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Summary
In an official announcement, Circle said it plans to launch cirBTC, a wrapped Bitcoin token backed 1:1 by BTC, with an initial focus on institutional markets. According to the company, cirBTC uses fully collateralized native BTC reserves designed for real-time, independent on-chain verification. Circle added that the token is planned to launch first on Ethereum and Arc chain.
Terms & Concepts
- Wrapped Bitcoin: A tokenized version of Bitcoin that is backed by BTC reserves and can be used on other blockchain networks or applications.
- On-chain verification: The process of confirming reserves, transactions, or other data directly through publicly accessible blockchain records.
- BTC: The ticker symbol for Bitcoin, the original cryptocurrency and the reserve asset backing cirBTC 1:1.