1:1 Bitcoin Backing: Circle Explains cirBTC Isolated Custody and On-Chain Reserve Verification

Odaily News Circle has released a statement explaining the reserve mechanism of cirBTC, stating that each cirBTC is backed 1:1 by 1 native BTC and can be redeemed for native BTC at a 1:1 ratio. The related BTC is held by Circle affiliates and custodied by Circle National Trust, which is regulated by the US Office of the Comptroller of the Currency (OCC). The reserve assets are segregated from Circle's corporate assets and are used solely to protect the interests of cirBTC holders. cirBTC is currently live on Ethereum, with native support planned after the Arc mainnet launch, and will gradually expand to more blockchains. Circle also provides on-chain reserve verification through publicly disclosed BTC reserve addresses and the Chainlink Proof of Reserve mechanism, allowing market participants to compare the size of reserved BTC against the circulating supply of cirBTC across various supported chains.