The background of the button is going to give you square corners. For a nice custom background, I would suggest making a background image and using as either the button's background or src. So your xml would look like:
android:src="@drawable/mybuttonimage"
android:bacgkround="@null"
or
android:background="@drawable/mybuttonimage"
I would test out both, as they can stretch your image differently.
Another option is to to create a shape in your res/drawable folder.
<?xml version="1.0" encoding="utf-8"?>
<shape xmlns:android="http://schemas.android.com/apk/res/android">
<solid android:color="#33DDFF" />
<corners android:radius="4dp" />
</shape>