Circle Launches Wrapped Bitcoin ‘cirBTC’

Circle, the issuer of the stablecoin ‘USDC,’ announced the launch of its own wrapped bitcoin, ‘cirBTC,’ as it moves to expand in the institutional digital asset (cryptocurrency) market.

On the 2nd (local time), Circle unveiled ‘cirBTC,’ a new asset backed 1:1 by bitcoin. The asset is set to roll out sequentially, starting on the Ethereum mainnet, followed by Circle’s layer-1 blockchain ‘Arc’ and the Circle Mint platform. Circle said it plans to provide institutional investors—such as OTC desks, market makers, and lending protocols—with wrapped bitcoin offering a high level of security and neutrality.

Demand for wrapped bitcoin is rising sharply as financial institutions, which have emerged as major buyers of bitcoin, actively explore decentralized finance (DeFi). Converting bitcoin into an Ethereum-based token allows it to be used as collateral across various DeFi services such as staking and lending, thereby maximizing asset management efficiency.

The market is currently led by BitGo’s ‘wBTC’ and Coinbase’s ‘cbBTC.’ BitGo’s wBTC maintains a solid No. 1 position with a market capitalization of about $8 billion (circulating supply of 119,157). Coinbase’s cbBTC, launched in September 2024, is also rapidly closing the gap with a market cap of $5.9 billion (supply of 88,800). Combined, the two assets account for roughly 208,000 BTC in supply.

The industry views Circle’s strong institutional network and the credibility it has built through issuing USDC as key variables in securing market share.