Highlights:
- Circle launches cirBTC, an institutional Bitcoin-backed token on the Ethereum and Arc networks.
- cirBTC connects with Circle Mint and Arc, which enable Bitcoin exposure through stablecoin operations.
- wBTC and cbBTC control the market with a new, institutionally focused product from Circle.
Circle wrapped Bitcoin is moving into the tokenized Bitcoin market with a new product called cirBTC, a 1:1 Bitcoin-backed asset that the company said will launch on Ethereum and Arc. The announcement puts Circle in direct competition with existing wrapped Bitcoin issuers Coinbase and BitGo, both of which already control significant market share through cbBTC and wBTC.
Circle Wrapped Bitcoin Adds to Existing Product Stack
Circle stated that cirBTC is being developed for institutional users, including over-the-counter desks, market makers, and lending protocols. The company also opened a waiting list for the asset and said the token will be integrated into its broader infrastructure, including Circle Mint and its Arc Layer 1 blockchain.
Circle wrapped Bitcoin will be connected to the company’s existing technology stack rather than launched as a standalone product. According to Circle, cirBTC will be integrated with Circle Mint, the firm’s platform for stablecoin issuance and redemption, as well as Arc, its bespoke Layer 1 blockchain.
Circle Mint is already used to access USDC, the second-largest dollar stablecoin by market capitalization, and EURC, which Circle describes as the largest euro stablecoin. The company said cirBTC will launch first on the Ethereum mainnet and the Arc network. That structure places the product across both a widely used public blockchain and Circle’s own blockchain network.
Circle described the token as a neutral, secure, wrapped Bitcoin product designed for institutional use cases that require tokenized BTC for trading, lending, and liquidity operations. Circle’s statement identified over-the-counter desks, market makers, lending protocols, and similar participants as the intended user base. The company said those users typically require wrapped Bitcoin products that can move across blockchain environments while maintaining a one-to-one backing with Bitcoin.
Market Led by BitGo and Coinbase
Circle wrapped Bitcoin enters a segment already dominated by two major products. BitGo’s Wrapped Bitcoin, or wBTC, remains the largest wrapped Bitcoin token by market capitalization. The token was created in 2019 and is currently overseen by a consortium that includes BitGo and entities connected to Justin Sun. Market data cited in the source material shows that wBTC has a market capitalization of about $8 billion and 119,157 tokens in circulation.
That total remains well below its November 2021 peak, when Bitcoin reached its all-time high during the cycle. The decline in wBTC supply over that period reflects a contraction from earlier market levels, even as the token continues to lead the wrapped Bitcoin category.
Several exchanges have also introduced their own wrapped Bitcoin products, including Kraken Wrapped BTC, Gate Wrapped BTC, Binance Wrapped BTC, Huobi BTC, and OKX Wrapped BTC. However, the market capitalizations of those tokens remain a fraction of the levels recorded by wBTC and cbBTC.
Circle Wrapped Bitcoin Arrives as Market Structure Shifts
Circle wrapped Bitcoin is launching at a time when the structure of the wrapped Bitcoin market has already changed. The source material notes that some parties have cut ties with or reduced exposure to wBTC due to concerns about Justin Sun’s involvement in the consortium overseeing the token.
Circle said cirBTC is intended to serve that segment by offering what it calls a neutral, high-security wrapped BTC product. The company also described the asset as suitable for participants who require a secure, high-performance tokenized Bitcoin. Those users include trading desks and protocols that rely on tokenized BTC for settlement, liquidity provisioning, or collateral.
The product’s positioning also shows that Circle is expanding beyond the stablecoin category while still using the infrastructure it built around that business. Rather than separating cirBTC from its existing tools, the company said the new token will operate alongside Circle Mint and Arc.
Broader Expansion Beyond Stablecoins
Circle wrapped Bitcoin will be one of a limited number of non-stablecoin products maintained by the company. In addition to USDC and EURC, Circle also manages USYC, a yield-bearing tokenized money market fund that was launched following its acquisition of Hashnote.
The source material also states that Circle is reportedly considering a native token for Arc, the EVM-compatible Layer 1 blockchain that is expected to mainnet this year. That makes cirBTC part of a broader expansion in Circle’s product line, though the company’s earlier Bitcoin-related efforts took a different form. Circle Pay, the firm’s flagship product for Bitcoin payments, was discontinued in 2019 as Circle shifted its focus to stablecoins.
The company is now returning to a Bitcoin-linked product through tokenization rather than payments. At the time of the announcement, CRCL was trading at $89.56, down 1.29% on the day, according to coinmarketcap.
