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

Odaily Planet Daily News: Circle has released a statement explaining the reserve mechanism for cirBTC, stating that each cirBTC is backed 1:1 by one native BTC and can be redeemed for native BTC at a 1:1 ratio. The underlying BTC is held by Circle-affiliated entities and custodied by Circle National Trust, which is regulated by the U.S. Office of the Comptroller of the Currency (OCC). The reserve assets are isolated from Circle's corporate assets and are used solely to protect the interests of cirBTC holders. cirBTC is currently live on Ethereum and will receive native support once the Arc mainnet launches, with further expansion to additional blockchains in the future. 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 scale of reserved BTC against the circulating supply of cirBTC across all supported chains.