Circle Expands Into Wrapped Bitcoin Market With Launch of cirBTC

TLDR

• Circle introduced cirBTC as a wrapped Bitcoin product for institutions.
• cirBTC is backed 1:1 by Bitcoin with onchain-verifiable reserves.
• The token will launch first on Ethereum and Circle’s Arc network.
• Circle is targeting trading, collateral, and settlement use cases.
• WBTC and cbBTC remain the largest rivals in the wrapped Bitcoin market.

Circle has introduced cirBTC, a new wrapped Bitcoin product backed 1:1 by BTC, as the company broadens its digital asset offerings beyond stablecoins and payments infrastructure. The product is aimed at institutional users seeking Bitcoin exposure in onchain markets through a structure Circle says is supported by verifiable reserves and designed for use across decentralized finance applications.

The company said cirBTC will launch on Ethereum and Arc, Circle’s blockchain project, and will be integrated with USDC and Circle Mint. Circle described the product as part of its wider plan to build blockchain-based financial infrastructure for trading, settlement, and liquidity services. The rollout places the company in direct competition with existing wrapped Bitcoin products that already hold a large share of onchain Bitcoin activity.

Wrapped Bitcoin products allow holders to use BTC in blockchain ecosystems where native Bitcoin cannot operate directly with smart contracts. These tokens are typically backed by Bitcoin held in reserve and are used for lending, borrowing, trading, and collateral management across DeFi platforms. With cirBTC, Circle is targeting institutions such as over-the-counter desks, market makers, and lending protocols that require tokenized Bitcoin for operational use.

Circle Positions cirBTC for Institutional Activity

Circle said cirBTC is designed to provide a wrapped Bitcoin option with reserves that are independently verifiable onchain. The company has framed the product as a neutral and transparent alternative for firms seeking access to Bitcoin-based liquidity in tokenized markets. Company executives have said the offering is built on infrastructure already used for Circle’s stablecoin and digital asset products.

The launch marks a step in Circle’s stated 2026 product strategy, which includes stablecoins, payments rails, blockchain tools, and tokenized financial services. By adding a wrapped Bitcoin token to that lineup, Circle is extending its reach into another part of the digital asset market where trading and collateral activity remain active. The company is also linking cirBTC to its existing products, which may help institutions move between dollar-based tokens and tokenized Bitcoin within the same ecosystem.

Circle co-founder and chief executive Jeremy Allaire said the company is applying infrastructure used for USDC, EURC, and USYC to the Bitcoin market. Circle’s product team has also said the goal is to give institutions a way to use Bitcoin in onchain finance without depending on structures that may offer less visibility into reserves and custody arrangements.

Competition Builds in the Wrapped Bitcoin Segment

Circle is entering a market that already has major issuers. BitGo’s Wrapped Bitcoin, or WBTC, remains the largest product in the category, with a market value of about $8 billion. Coinbase’s cbBTC has also gained scale, with a market value near $6 billion. Those figures show that demand for tokenized Bitcoin remains established across onchain markets.

The segment has also faced scrutiny tied to governance, custody, and transparency. In 2024, WBTC drew criticism after its custodian announced a partnership with BiT Global, a company linked to Tron founder Justin Sun. Coinbase later launched cbBTC, and competition between wrapped Bitcoin issuers intensified as exchanges and custodians sought a larger share of Bitcoin activity in DeFi.

Circle’s entry adds another well-capitalized issuer to that market. The company is betting that its experience with regulated stablecoin infrastructure and its institutional client base can help cirBTC gain adoption. The initial launch on Ethereum and Arc suggests Circle is focusing on networks where liquidity and existing integrations can support early usage.

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