Circle Details cirBTC Reserve Mechanism and 1:1 BTC Backing

Circle said each cirBTC is backed 1:1 by native BTC and can be redeemed for native BTC at the same ratio. According to Odaily, the related BTC is held by a Circle affiliate and custodied by Circle National Trust, which is regulated by the U.S. Office of the Comptroller of the Currency. The reserve assets are separated from Circle’s corporate assets and are used only to protect cirBTC holders’ interests. cirBTC is currently live on Ethereum. Circle said native support will be added after the Arc mainnet launches, with expansion to more blockchains planned later. Circle also said it provides on-chain reserve verification through a public BTC reserve address and Chainlink Proof of Reserve, allowing market participants to compare reserve holdings with cirBTC circulating supply on supported chains.