Stablecoin issuer Circle announced plans to launch a new wrapped Bitcoin token, called cirBTC, targeting institutional users. The asset will be backed 1:1 by Bitcoin and initially launch on the Ethereum network, as well as Circle’s own Arc blockchain and its Mint platform. This move positions Circle against established competitors like Coinbase and BitGo in the growing market for Bitcoin-based DeFi products.
Stablecoin issuer Circle said it plans to launch its own version of a wrapped Bitcoin, which would put it against incumbents Coinbase and BitGo as it targets institutional users. The asset, called cirBTC and announced on Thursday, is set to launch on Ethereum, backed 1:1 by bitcoin (BTC) and aimed at over-the-counter desks, market makers and lending protocols.
Circle said the asset is designed to provide institutions with a “highly secure and neutral version of wrapped BTC.” Financial institutions, which have become significant buyers of Bitcoin, have been actively exploring decentralized finance.
Wrapped versions of Bitcoin allow the asset to be used on other chains, such as Ethereum, giving them access to DeFi. In addition to Ethereum, the new asset will also launch on Circle’s layer-1 blockchain Arc and its Circle Mint platform.
Circle’s new wrapped Bitcoin joins a market currently led by BitGo’s Wrapped Bitcoin (WBTC) and Coinbase Wrapped Bitcoin (cbBTC). Coinbase’s cbBTC was launched in September 2024 and has a current market capitalization of $5.9 billion.
BitGo’s wBTC is the dominant wrapped Bitcoin token, with a market capitalization of about $8 billion. However, that figure is roughly half its November 2021 peak, when Bitcoin hit its cycle all-time high.
Several crypto exchanges have launched variations of wrapped Bitcoin, including Kraken, Binance, and OKX. The total combined supply of wBTC and cbBTC stands at roughly 208,000 BTC, according to data from CoinGecko.
