Circle has introduced a wrapped token, cirBTC, backed 1:1 by Bitcoin, aiming to expand BTC’s use in the DeFi sector. According to the company, the main barrier to Bitcoin’s participation in decentralized finance has been a lack of trust in existing solutions, and the new product is designed to solve this through transparency and verifiable reserves.

The new token will allow Bitcoin holders to use their assets in lending, borrowing, and other DeFi operations outside the main network. The launch is planned on Ethereum and Arc networks, with integration into Circle’s ecosystem, including the USDC stablecoin and the Circle Mint platform, simplifying access for institutional investors.

cirBTC enters a market already occupied by competitors such as WBTC and cbBTC, which have previously faced criticism from the crypto community. Circle expects its reputation and infrastructure to help create a more reliable alternative for users and major market participants.

Amid these developments, the company’s shares remain volatile and under pressure, having declined by around 40% over the past six months. Nevertheless, the launch of the new product could become an important step in expanding Bitcoin’s practical use.