Circle outlines seven-part framework for evaluating institutional wrapped assets

The stablecoin issuer's checklist covers custody, reserves, redemption and more, then grades its own cirBTC against it Circle has published a seven-part framework for judging whether wrapped assets are fit for institutional use. The test covers custody, reserves, redemption, compliance, operational resilience, governance and composability. The core idea is a weakest-link rule. Circle’s position is that a wrapped asset is only as strong as its worst-performing category, so a token with spotless custody and sloppy redemption still fails the test. A wrapped asset is a token on one blockchain that represents an asset held somewhere else.

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