Stablecoin issuer Circle is moving into tokenized bitcoin with the launch of cirBTC, a wrapped bitcoin product designed for institutional users. The asset is fully backed by bitcoin reserves that can be verified on-chain, emphasizing security and transparency.
1:1 Bitcoin Backing, On-Chain Auditability
Circle says cirBTC's reserves will be auditable on-chain, allowing users to independently verify backing at any time. This contrasts with lower-transparency wrapped bitcoin models. The product integrates directly with Circle's USDC stablecoin and Circle Mint infrastructure, tying it into the company's existing payment and liquidity ecosystem.
First on Ethereum and Arc, Targeting OTC and Lending Desks
cirBTC initially launches on Ethereum and Circle's own blockchain project Arc. It targets over-the-counter trading desks, market makers, and lending protocols that need a tokenized bitcoin for collateral, trading, and settlement. Circle pegs cirBTC as part of its 2026 product roadmap, aiming to build a new internet financial system using stablecoins, payment networks, and blockchain tools.
Challenging a Dominated Market
The incumbent WBTC holds roughly $8 billion in market cap, while Coinbase's cbBTC sits at about $6 billion. Circle's deep stablecoin infrastructure and institutional compliance track record could give it an edge, but breaking into an established space won't be easy.