- Circle plans to launch cirBTC, a wrapped Bitcoin token backed 1:1 by BTC.
- Designed for institutional users including OTC desks, market makers, and lending protocols.
- cirBTC will operate on Ethereum and Circle’s Arc blockchain.
- Integration planned with Circle Mint platform.
- Joins a growing market led by Wrapped Bitcoin (WBTC) and Coinbase Wrapped Bitcoin (cbBTC).
Circle Introduces cirBTC for Institutional Markets: Circle announced plans to launch cirBTC, its own version of wrapped Bitcoin designed specifically for institutional participants. The token will be backed 1:1 by bitcoin and positioned as a secure and neutral wrapped BTC asset. The offering targets over-the-counter desks, market makers, lending protocols, and other institutional users. Circle stated that cirBTC aims to provide a reliable mechanism for accessing decentralized finance while maintaining full backing of the underlying asset.
Wrapped Bitcoin Expands DeFi Access
Wrapped Bitcoin enables native bitcoin to be tokenized and used on other blockchain networks. With cirBTC launching on Ethereum, users can bring BTC into decentralized finance ecosystems and access applications beyond the Bitcoin network. In addition to Ethereum, cirBTC will also launch on Circle’s layer-1 blockchain Arc and integrate with the Circle Mint platform, supporting broader cross-chain functionality.
Growing Competition in Wrapped Bitcoin Market: Circle enters an expanding sector where multiple firms have introduced wrapped Bitcoin products. The market is currently led by BitGo’s Wrapped Bitcoin, which has a market capitalization of about $8 billion.
Coinbase launched Coinbase Wrapped Bitcoin (cbBTC) in September 2024, which has grown to a market capitalization of $5.9 billion. The exchange also introduced Wrapped ADA (cbADA) on the Base blockchain to support cross-chain liquidity. Other exchanges offering similar products include Kraken (kBTC), Binance (BBTC), Bitget (BGBTC), and OKX (okBTC). These assets are often paired with proof-of-reserve systems to ensure that underlying bitcoin is securely held in 1:1 custody.
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