Circle Launches cirBTC Reserve Mechanism, 1:1 Backed by Native BTC

Circle has released a description of the cirBTC reserve mechanism, stating that each cirBTC is backed 1:1 by a native BTC and can be exchanged for native BTC at a 1:1 ratio. The related BTC is held by Circle's affiliated companies and is custodied by Circle National Trust, which is regulated by the Office of the Comptroller of the Currency (OCC). The reserve assets are isolated from Circle's corporate assets and are solely used to safeguard the rights of cirBTC holders. cirBTC is currently live on Ethereum and will provide native support after the launch of the Arc mainnet, with plans to gradually expand to more blockchains. Circle offers on-chain reserve verification through public BTC reserve addresses and the Chainlink Proof of Reserve mechanism, allowing market participants to compare the scale of reserve BTC with the circulating supply of cirBTC on each supported chain.

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