Jeremy Allaire, CEO of Circle, announced today that cirBTC—Circle’s version of Bitcoin, fully backed by actual Bitcoin—is now available for testing on two blockchains, Arc and Ethereum. Developers can access documentation and a testnet faucet to begin experimenting with it.
Circle CEO Jeremy Allaire announced on X that cirBTC is now functional, providing links to developer documentation and a testnet faucet at faucet.circle.com. This means developers can start experimenting with cirBTC by minting and transferring it on the testnet, preparing for the planned launch on the main network in the second quarter of 2026.
cirBTC is coming alive.
Dev docs here:
Testnet Faucet on Arc and Ethereum:
— Jeremy Allaire – jerallaire.arc (@jerallaire) May 21, 2026
Earlier this year, The Crypto Times noted that cirBTC is Circle’s first significant product beyond stablecoins since they plan to be listed on the New York Stock Exchange in 2025. It’s a move designed to compete with existing ‘wrapped Bitcoin’ options like WBTC from BitGo and cbBTC from Coinbase.
What cirBTC Is—and Why It Matters
Circle Wrapped Bitcoin (cirBTC) is a digital form of Bitcoin created by Circle and operating on the Ethereum and Arc blockchains. Each cirBTC token represents one actual Bitcoin held securely by Circle. These Bitcoins are kept completely separate from Circle’s own funds and are held specifically for cirBTC owners, offering a more secure and transparent system compared to some other similar products.
Bitcoin has a large market value – over $1.7 trillion – but isn’t actively used in the world of decentralized finance (DeFi) because it can’t directly work with smart contracts. cirBTC solves this problem by creating a digital version of Bitcoin that *can* be used on blockchains with smart contracts, effectively turning Bitcoin that’s currently sitting unused into an asset that can generate returns.
Although Bitcoin is the most popular cryptocurrency, it can’t directly work with smart contracts – the technology that powers things like lending, borrowing, and advanced trading – without being converted into a different format. cirBTC addresses this by creating a digital version of Bitcoin that *can* be used on blockchains that support smart contracts.
A primary way cirBTC is used is to combine it with USDC, allowing users to deposit Bitcoin as collateral and borrow stablecoins. This lets them access funds without having to sell their Bitcoin.
The Neutral Issuer Pitch
Circle is highlighting cirBTC’s neutrality and transparency as key advantages for institutions considering its use.
Circle, the issuer of USDC, doesn’t run a cryptocurrency exchange or lending service, according to its official documentation. This is different from Coinbase’s wrapped Bitcoin (cbBTC), where Coinbase also operates a major U.S. exchange and offers lending, potentially creating conflicts of interest. It also sets it apart from WBTC, which has raised trust issues following changes to BitGo’s ownership in 2024 that brought entities linked to Justin Sun into its control.
cirBTC’s reserves will be openly and continuously verifiable on the blockchain by anyone, offering greater transparency than most other wrapped Bitcoin options, which typically rely on occasional audits. Circle already has the necessary licenses and regulatory approvals from the U.S. and Bermuda to support this.
WBTC vs. cbBTC vs. cirBTC
Circle isn’t trying to compete with existing DeFi platforms that already have a lot of activity. Instead, they’re focusing on providing a solution that meets the strict regulatory needs of institutions. By fully integrating with their existing services – like USDC, EURC, Circle Mint, and Arc – Circle offers a complete, all-in-one system. This makes it easier for over-the-counter trading firms, market makers, and lending platforms to operate without having to work with multiple custody providers.
We’re launching first on Ethereum and Arc for strategic reasons. Ethereum gives us access to the largest DeFi markets. Arc, a blockchain built by Circle and valued at $3 billion with support from BlackRock, offers a secure and efficient system using USDC for all transactions. We plan to add support for Solana and other Layer 2 blockchains in the future, but those plans aren’t finalized yet.
From Testnet to Mainnet: What’s Next
As a researcher following this project, I’m excited to share that we’ve launched the testnet! This allows developers to start building and testing how their applications will work with the system before we officially launch. We’re currently aiming for a full launch in the second quarter of 2026. In the coming weeks, we expect to see integrations with DeFi protocols and connectivity with Circle Mint. For those unfamiliar, Circle Mint is how institutions create and redeem USDC, and it will be the main way cirBTC is issued and redeemed as well.
These developments coincide with Circle’s plans for significant product advancements by 2026. The recent presale of the Arc token generated $222 million in May, and transactions using USDC on the blockchain reached $21.5 trillion in the first quarter of the year – a 263% increase compared to last year. Since becoming a publicly traded company (NYSE: CRCL), Circle’s stock price has also increased by roughly 30%. CEO Jeremy Allaire envisions Circle becoming a foundational technology provider for internet finance, and cirBTC, along with USDC and EURC, is a key component of this strategy.
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2026-05-22 13:15