Circle Internet Group unveiled plans for cirBTC, a wrapped Bitcoin token backed 1:1 by native BTC, designed to provide institutions with a secure and neutral version of wrapped Bitcoin for use in decentralized finance applications, lending protocols, and trading.
The token will first launch on Ethereum mainnet and Arc, Circle’s own Layer 1 blockchain, with full integration into Circle’s existing tech stack including the Circle Mint stablecoin issuance platform and the USDC stablecoin.
cirBTC Targets Institutional Wrapped Bitcoin Market with 1:1 Backing
Circle stated on its website that cirBTC is designed to provide institutions with a highly secure and neutral version of wrapped BTC, well-suited for over-the-counter desks, market makers, lending protocols, and others that require neutral, secure, and high-performance tokenized Bitcoin. The token will be backed 1:1 by Bitcoin, with reserves readily and independently verifiable onchain.
cirBTC will be fully integrated with Circle’s existing technology stack, including its bespoke Layer 1 blockchain Arc and the Circle Mint stablecoin redemption and issuance platform. Circle Mint is currently used to access USDC, the second-largest dollar stablecoin by market capitalization, and EURC, the largest euro-pegged stablecoin. The token will launch first on Ethereum mainnet and Arc.
Circle Vice President of Product Rachel Mayer stated on X that Bitcoin is sitting on the sidelines of DeFi not because people don’t want yield or liquidity, but because they don’t trust the wrapper. She described cirBTC as Circle’s answer: 1:1 backed, onchain-verifiable, and built on infrastructure the market already trusts.
Circle Competes with WBTC and cbBTC in Tokenized Bitcoin Market
cirBTC enters a wrapped Bitcoin market with established incumbents. BitGo’s Wrapped Bitcoin (WBTC), created in 2019 and now overseen by a consortium including BitGo and Justin Sun-connected entities, maintains a market capitalization of approximately $8 billion. Coinbase’s cbBTC, launched following WBTC’s partnership with BiT Global, has a market cap near $6 billion.
WBTC faced criticism in August 2024 when its custodian announced a partnership with BiT Global, a firm with connections to Tron founder Justin Sun, leading some parties to cut ties or reduce exposure due to concerns over Sun’s involvement. Coinbase subsequently delisted WBTC from its exchange, leading to a lawsuit from BiT Global that was eventually dropped.
Circle is positioning cirBTC as the “institutional-grade global standard” for wrapped Bitcoin, leveraging its proven credibility and full-stack flexibility. The company expects that users want to put their Bitcoin to work via lending or borrowing in DeFi applications, and a wrapped Bitcoin product allows engagement with DeFi protocols and smart contracts on networks beyond the native Bitcoin blockchain.
Circle Expands Beyond Stablecoins into Tokenized Bitcoin and Money Market Funds
cirBTC represents one of a few non-stablecoin products from Circle. The firm also maintains the USYC yield-bearing tokenized money market fund following its acquisition of Hashnote, and is reportedly exploring a native token for its EVM-compatible Arc Layer 1 blockchain, which is expected to mainnet in 2026.
Circle’s original flagship product for sending Bitcoin payments, Circle Pay, was sunset in 2019 as the firm pivoted to focus solely on stablecoins. The launch of cirBTC marks a broader push beyond its core stablecoin business and deeper into tokenized market infrastructure.
Circle CEO Jeremy Allaire stated that the company is bringing the same infrastructure that supports USDC, EURC, and USYC to the largest digital asset, creating neutral infrastructure for new applications for on-chain Bitcoin. cirBTC will integrate with USDC and Circle Mint as part of a broader Circle native stack.
Shares of Circle (CRCL) closed at $89.56, down 1.29% on the day, and have fallen nearly 40% over the last six months.
FAQ
What is cirBTC and how is it backed?
cirBTC is a wrapped Bitcoin token issued by Circle, backed 1:1 by native Bitcoin held in reserves that are readily and independently verifiable onchain. It is designed to provide institutions with a secure and neutral version of wrapped BTC for use in DeFi applications, trading, and collateral.
On which blockchains will cirBTC first launch?
cirBTC will first launch on Ethereum mainnet and Arc, Circle’s own Layer 1 blockchain. The token will be fully integrated with Circle Mint and USDC as part of Circle’s existing technology stack.
How does cirBTC differ from existing wrapped Bitcoin tokens like WBTC and cbBTC?
Circle positions cirBTC as an institutional-grade, neutral alternative to existing wrapped Bitcoin tokens. Unlike WBTC, which faced criticism over Justin Sun’s involvement, cirBTC leverages Circle’s established credibility as the issuer of USDC. The token is built on infrastructure the market already trusts, with onchain-verifiable reserves and integration into Circle’s full-stack stablecoin ecosystem.
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