Although Bitcoin stands as a premier collateral resource within digital finance, native BTC inherently lacks the ability to navigate smart contract markets directly. To resolve this limitation, cirBTC was developed to seamlessly link BTC collateral to USDC liquidity. This integration empowers institutional participants to execute their settlement, hedging, treasury management, and borrowing operations smoothly, entirely avoiding the need to unwind their existing BTC positions. The service is currently live on Ethereum, and an upcoming rollout will introduce support for the Arc Testnet.

https://www.circle.com/blog/how-usdc-and-cirbtc-unlock-capital-efficiency