Circle to Launch cirBTC Wrapped Bitcoin for Institutions

Circle Announces cirBTC Wrapped Bitcoin Launch – New Institutional Offering Enters Market Led by BitGo and Coinbase

Key Takeaways

• Circle plans to launch cirBTC, a wrapped Bitcoin token backed 1:1 by BTC.
• The asset will debut on Ethereum and expand to Circle’s layer-1 blockchain Arc and its Circle Mint platform.
• Circle targets institutional users, including over-the-counter desks, market makers and lending protocols.
• The wrapped Bitcoin market is currently led by BitGo’s WBTC and Coinbase’s cbBTC, with a combined supply of roughly 208,000 BTC.

Circle Expands Beyond Stablecoins With cirBTC Launch

Circle, known for issuing stablecoins such as USDC and EURC, has announced plans to introduce its own wrapped Bitcoin product. The new asset, called cirBTC, is designed to be backed 1:1 by bitcoin and will initially launch on Ethereum.

According to the company, cirBTC is aimed at institutional users. The target group includes over-the-counter trading desks, market makers and lending protocols. Circle describes the product as a highly secure and neutral version of wrapped BTC intended for institutional market participants.

In addition to its Ethereum launch, cirBTC will also be deployed on Circle’s layer-1 blockchain Arc and integrated into the Circle Mint platform. At the time of reporting, Circle had not provided further operational details beyond the initial announcement.

The move marks an expansion of Circle’s product portfolio beyond fiat-backed stablecoins into tokenized representations of bitcoin for use in decentralized finance environments.

Wrapped Bitcoin Enables Access to DeFi Infrastructure

Wrapped Bitcoin tokens are digital assets that represent bitcoin on other blockchains. By issuing a tokenized version of BTC on networks such as Ethereum, holders can use bitcoin within decentralized finance applications.

Financial institutions have become significant buyers of Bitcoin and are actively exploring decentralized finance. Wrapped Bitcoin products allow these entities to move BTC liquidity into DeFi ecosystems, where it can be used in lending protocols and other onchain financial services.

By launching cirBTC on Ethereum, Circle positions the asset within one of the primary networks used for decentralized applications. The additional deployment on Arc and availability through Circle Mint suggest a multi-platform distribution strategy tailored to institutional infrastructure.

For users who interact with crypto platforms, including exchanges and DeFi services, wrapped Bitcoin products can influence liquidity flows between native BTC markets and Ethereum-based protocols. Changes in supply and custody arrangements may affect where and how BTC is utilized across platforms.

Market Landscape Dominated by BitGo and Coinbase

Circle’s entry places it in direct competition with established wrapped Bitcoin providers. The current market leaders are BitGo’s Wrapped Bitcoin (WBTC) and Coinbase Wrapped Bitcoin (cbBTC).

Coinbase launched cbBTC in September 2024. The token currently has a market capitalization of 5.9 billion dollars and a circulating supply of 88,800 tokens.

BitGo’s WBTC remains the dominant wrapped Bitcoin asset. It has a market capitalization of approximately 8 billion dollars and 119,157 tokens in circulation. However, this figure is about half of its peak supply recorded in November 2021, when Bitcoin reached its cycle all-time high. Data cited in the report indicates that WBTC supply has declined over the past few years.

According to CoinGecko data referenced in the source material, the combined supply of WBTC and cbBTC stands at roughly 208,000 BTC. This consolidated figure illustrates the scale of tokenized Bitcoin currently circulating on Ethereum and related networks.

Beyond these two leading products, several crypto exchanges have introduced their own wrapped Bitcoin variations. These include Kraken Wrapped BTC (KBTC), Gate Wrapped BTC (GTBTC), Binance Wrapped BTC (BBTC), Huobi BTC (HBTC) and OKX Wrapped BTC (XBTC). Their market capitalizations are described as significantly smaller compared to WBTC and cbBTC.

The presence of multiple issuers highlights a competitive environment where custody structure, liquidity access and institutional trust are central differentiators.

Implications for Institutional and Platform Users

Circle’s focus on institutional users signals continued demand for compliant and infrastructure-oriented Bitcoin products. Over-the-counter desks and market makers often require predictable settlement frameworks and transparent backing mechanisms when moving large amounts of BTC between chains.

For lending protocols, a new wrapped Bitcoin token can represent an additional source of collateral and liquidity. If adopted, cirBTC could expand the range of BTC-backed assets available for borrowing and lending within decentralized systems.

For users of crypto betting platforms, exchanges or DeFi-integrated services, wrapped Bitcoin products may influence which tokenized BTC variant is supported for deposits, withdrawals or collateralization. Liquidity distribution across WBTC, cbBTC and potentially cirBTC can shape integration decisions by service providers.

As financial institutions continue to explore decentralized finance, tokenized Bitcoin remains a key bridge between native BTC holdings and Ethereum-based applications. Circle’s entry adds another issuer to a market that already manages hundreds of thousands of BTC in wrapped form.

Our Assessment

Circle’s announcement of cirBTC introduces a new institutional-focused wrapped Bitcoin product into a market currently led by BitGo and Coinbase. With WBTC and cbBTC accounting for roughly 208,000 BTC in combined supply, the sector represents a significant portion of tokenized Bitcoin activity. By launching on Ethereum and extending to Arc and Circle Mint, Circle expands its infrastructure offerings beyond stablecoins and positions itself within the competitive landscape of BTC liquidity in decentralized finance.