Circle has launched cirBTC, a wrapped Bitcoin token on Ethereum, backed by Bitcoin custodied at Circle National Trust with onchain reserve verification via Chainlink Proof of Reserve. At launch, only 40 BTC are outstanding, indicating the product is in very early adoption. Integration with the Arc lending platform is described as forthcoming.
For Armada's crypto repo desk, cirBTC represents a new entrant in the wrapped BTC collateral category alongside WBTC and cbBTC. The Circle National Trust custody structure and Chainlink attestation provide stronger transparency than some peers, but the 40 BTC outstanding makes current market liquidity insufficient for meaningful repo collateral use. Monitor growth and confirm Fireblocks supports the token before adding to collateral eligibility lists.