Circle Plans cirBTC, a 1:1 Bitcoin-Backed Wrapped Token for Institutional DeFi

The company says cirBTC would be a wrapped token (tokenized version of an asset) fully backed by Bitcoin and designed for institutional DeFi (blockchain-based financial services).

BTC

Summary

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Terms & Concepts
  • Wrapped token: A blockchain-based token that represents another asset on a 1:1 basis, allowing that asset to be used on different networks or in applications.
  • DeFi: Decentralized finance, a set of blockchain-based financial services that operate through smart contracts without traditional intermediaries.
  • 1:1 BTC-backed: A structure in which each token is intended to be supported by one equivalent unit of Bitcoin held in reserve.