- Circle introduced Bitcoin-backed assets to its DeFi ecosystem with the debut of cirBTC on Arc.
- Bitcoin held in custody for token holders backs cirBTC 1:1.
- Through third-party loan markets, qualified Circle Mint customers can borrow USDC against cirBTC. Through Circle’s Arc Portal, cirBTC can transfer between Ethereum and Arc.
Circle has launched cirBTC on its Arc network, giving Bitcoin holders a new way to use BTC for lending, trading, settlement, and borrowing without selling their underlying assets.
Circle is a global financial technology company focused on digital currencies, stablecoins, and blockchain-based payments. Circle, the issuer of USDC, has introduced Circle Wrapped Bitcoin (cirBTC) on Arc, allowing eligible users to bring Bitcoin into the network through a 1:1 Bitcoin-backed token.
Bitcoin liquidity is now live on Arc.
cirBTC brings 1:1 BTC-backed collateral into Arc’s stablecoin-native ecosystem, helping BTC become productive across lending, trading, collateral, settlement, and treasury workflows.
BTC as collateral. USDC as borrow and settlement asset.
A stronger foundation for onchain credit markets.
https://t.co/mNQwR4LnUL
— Arc (@arc) September 21, 2026
According to Circle’s September 21 announcement, each cirBTC is backed by an equivalent amount of Bitcoin held in custody for token holders. The token can be used across supported lending, trading, settlement, and treasury applications on Arc.
Bitcoin Gets A New Role In Arc DeFi
Bitcoin cannot directly interact with smart contracts on networks such as Arc. cirBTC provides a tokenized representation of BTC that can interact with supported onchain applications.
Circle said the underlying Bitcoin is held by Circle National Trust, a federally chartered national trust bank, for the Circle affiliate responsible for holding the assets. Bitcoin is segregated from Circle’s corporate assets.
Circle also said cirBTC is not a derivative or staking product. Reserve information is published through Chainlink Proof of Reserve, allowing users to monitor the reported Bitcoin backing on-chain.
Circle Mint Users Can Borrow USDC Against BTC
The launch also expands Circle’s Digital Asset-Backed Borrowing (DABB) service to eligible Circle Mint customers. Under the structure, users deposit Bitcoin, mint cirBTC, and supply the token as collateral through approved third-party lending markets. They can then receive USDC in their Circle Mint accounts.
Circle does not originate, underwrite, or fund these loans. Instead, lending services are provided by independent third parties. The model gives Bitcoin holders a way to access dollar liquidity while maintaining exposure to BTC.
cirBTC Connects Ethereum & Arc
cirBTC is also available through Arc Portal, Circle’s interface for transferring supported assets between networks. Users can move cirBTC from Ethereum to Arc, while users on Arc can exchange supported assets, including USDC, for cirBTC.
Arc has also highlighted lending integrations with protocols such as Morpho and Aave. Borrowing terms, liquidity, and collateral limits will depend on the individual lending protocols.
Arc Adds Bitcoin-backed Liquidity
The cirBTC launch comes shortly after Arc’s September 16 mainnet debut. The network is built around stablecoin-based financial activity, with USDC serving as a core asset for fees and settlement.
Adding cirBTC gives Arc-based applications access to Bitcoin-backed collateral alongside USDC. The longer-term impact will depend on liquidity, protocol adoption, and demand for Bitcoin-backed borrowing.
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