Circle (CRCL) Launches cirBTC Wrapped Bitcoin Targeting Institutional Users

TLDR

• Circle announced cirBTC, a wrapped Bitcoin token backed 1:1 by BTC, targeting institutional users
• cirBTC will launch on Ethereum, Circle’s Arc blockchain, and its Circle Mint platform
• The token is aimed at OTC desks, market makers, and lending protocols
• BitGo’s WBTC leads the market at ~$8B market cap; Coinbase’s cbBTC sits at $5.9B
• Circle enters a crowded space that already includes Kraken, Binance, OKX, and others

Circle, the stablecoin issuer behind USDC, is moving into wrapped Bitcoin. The company announced Thursday it plans to launch cirBTC — a token backed 1:1 by Bitcoin — on the Ethereum network.

The product is aimed squarely at institutional users: OTC desks, market makers, and lending protocols. Circle described it as a “highly secure and neutral version of wrapped BTC.”

Wrapped Bitcoin lets BTC move onto other blockchains like Ethereum, giving holders access to DeFi applications they otherwise couldn’t use with native Bitcoin.

In addition to Ethereum, cirBTC will also launch on Circle’s own layer-1 blockchain, Arc, and integrate with the Circle Mint platform.

The announcement marks Circle’s first direct move into the wrapped asset space — a market it hasn’t played in before, despite being one of crypto’s most established infrastructure providers.

A Market Already Crowded at the Top

The wrapped Bitcoin space has two clear leaders right now. BitGo’s WBTC holds the top spot with a market cap of around $8 billion and roughly 119,000 tokens in circulation — though that’s about half of its November 2021 peak.

Coinbase entered the race in September 2024 with cbBTC, which has grown quickly to a $5.9 billion market cap and a supply of around 88,800 tokens.

Combined, WBTC and cbBTC account for roughly 208,000 BTC in total supply, according to CoinGecko.

Several exchanges have also launched their own versions — Kraken (kBTC), Binance (BBTC), OKX (okBTC), and Bitget (BGBTC), among others — though their market caps are a fraction of the two leaders.

Circle is walking into a market with entrenched players and a clear pecking order. Whether cirBTC can carve out real institutional demand is the question.

Institutions, DeFi, and the Bitcoin Bridge

Financial institutions have been buying Bitcoin at scale. The next step for many is finding ways to put that capital to work in DeFi — and that’s where wrapped assets come in.

By bringing BTC onto Ethereum’s network, wrapped tokens let institutions plug into lending protocols, liquidity pools, and other DeFi infrastructure without selling their Bitcoin.

Circle is pitching cirBTC as the neutral, institutional-grade option in that pipeline.

The company hasn’t detailed custody arrangements or proof-of-reserve mechanics yet. Cointelegraph reached out for further comment and did not receive a response.

What’s clear is that Circle sees opportunity in being the issuer that institutions trust — the same positioning that made USDC one of the dominant stablecoins.

The token’s launch timeline has not been confirmed. Circle said it plans to debut cirBTC on Ethereum, Arc, and Circle Mint, but gave no specific date.

The post Circle (CRCL) Launches cirBTC Wrapped Bitcoin Targeting Institutional Users appeared first on CoinCentral.