Circle Launches Circle Wrapped Bitcoin (cirBTC) to Bring BTC into DeFi
Circle unveiled plans to launch Circle Wrapped Bitcoin (cirBTC), a token designed to bring Bitcoin into decentralized finance by enabling BTC to be used directly in smart-contract ecosystems. Circle frames cirBTC as a bridge between Bitcoin’s liquidity and the composable tooling of DeFi, which could boost on‑chain activity for BTC while leveraging Circle’s existing USDC infrastructure.
The announcement matters because a major stablecoin issuer entering the wrapped‑BTC space may change how liquidity flows across protocols and affect collateral options for platforms such as MakerDAO (MKR) and other lending markets. Market participants will watch custody, redemption mechanics and interoperability details closely, as those factors determine whether cirBTC complements or competes with existing wrapped‑BTC solutions and how it impacts BTC (BTC) and USDC (USDC) usage in DeFi.