What is cirBTC and why did Circle launch it?

cirBTC is Circle's new wrapped Bitcoin token on Ethereum that is backed 1:1 by Bitcoin. The product allows Bitcoin holders to use their BTC in decentralised finance applications without selling their underlying assets.

How does cirBTC work?

Users deposit Bitcoin, which is held as backing for the equivalent amount of cirBTC issued on Ethereum. The wrapped token can then be used across DeFi platforms while maintaining exposure to Bitcoin's price movements.

Why can't Bitcoin be used directly in most DeFi applications?

The Bitcoin network was not designed with the same level of programmability as blockchains such as Ethereum. Wrapped Bitcoin products solve this limitation by creating tokenised versions of BTC that can interact with smart contracts.

Who is Circle targeting with cirBTC?

Circle is primarily targeting institutional investors and large Bitcoin holders. The company believes institutions already familiar with its USDC infrastructure may be more comfortable using a Bitcoin product issued by Circle.

How does cirBTC compete with Coinbase's cbBTC?

Both cirBTC and cbBTC allow Bitcoin holders to access Ethereum-based DeFi applications. Circle is competing for market share in the synthetic Bitcoin sector, which has been growing as investors seek additional utility for their BTC holdings.

What is the current size of the wrapped Bitcoin market?

The total synthetic Bitcoin market is valued at between US$12.5 billion and US$13.5 billion. Despite its growth, the sector still represents only about 1% of Bitcoin's roughly US$1.25 trillion market value.

Which wrapped Bitcoin product is currently the market leader?

Wrapped Bitcoin (wBTC) remains the largest synthetic Bitcoin product with a market capitalisation of about US$7.3 billion. Coinbase's cbBTC follows with a market value approaching US$5.4 billion.

Why is Circle entering the wrapped Bitcoin market now?

Circle is expanding beyond stablecoins as institutional demand for Bitcoin-based DeFi products grows. The launch gives Circle another way to monetise its infrastructure and deepen its role within the broader digital asset ecosystem.

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Circle launches cirBTC to rival Coinbase

Written by Liezl GambePublished Jun 10, 2026, 1:39 AM

Circle has launched cirBTC on Ethereum, introducing a wrapped Bitcoin token as the stablecoin issuer seeks to compete with Coinbase and BitGo in the growing market for synthetic Bitcoin assets.

The new token is backed one-for-one by Bitcoin and is designed to allow investors to use their BTC holdings across decentralised finance applications, including lending platforms, decentralised exchanges, tokenised asset protocols and stablecoin ecosystems.

Circle said the product is aimed at institutions that primarily hold Bitcoin and are already familiar with the company's infrastructure through its USDC stablecoin business.

Wrapped Bitcoin products exist because the Bitcoin network lacks the native programmability required for most DeFi applications, prompting users to convert BTC into tokenised versions that can operate on networks such as Ethereum.

The synthetic Bitcoin market remains relatively small compared with Bitcoin's overall valuation, with total wrapped Bitcoin assets carrying a combined market capitalisation of between US$12.5 billion and US$13.5 billion, representing roughly 1% of Bitcoin's US$1.25 trillion value.

The sector is currently led by Wrapped Bitcoin (wBTC), which launched in 2019 and holds a market capitalisation of approximately US$7.3 billion, while Coinbase's cbBTC, introduced in 2024, has grown to nearly US$5.4 billion.

The launch positions Circle, whose USDC stablecoin exceeds US$75 billion in market value, to compete directly for institutional demand as firms increasingly look for ways to deploy Bitcoin holdings across decentralised finance infrastructure without selling the underlying asset.

At the time of reporting, Ethereum price was $1,641.37.

Circle launches cirBTC to rival Coinbase

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