TLDR
- Circle launched cirBTC, a wrapped Bitcoin token backed 1:1 with BTC for institutional users.
- Circle said cirBTC reserves will be readily and independently verifiable onchain.
- The product targets OTC desks, market makers, lending protocols, and other institutional firms.
- cirBTC will launch first on Ethereum and Arc, and it will integrate with USDC and Circle Mint.
- Circle enters a market led by WBTC at about $8 billion and cbBTC near $6 billion.
Circle has entered the wrapped Bitcoin market with cirBTC, a BTC-backed token built for institutional users. The product gives firms a way to use Bitcoin in onchain trading, lending, collateral, and settlement. The move expands Circle’s reach beyond stablecoins and into tokenized Bitcoin infrastructure. It also places Circle against WBTC and cbBTC, the largest tokenized Bitcoin products now trading.
Circle pitches cirBTC to institutions
Circle said cirBTC is backed 1:1 by BTC, and reserves will be independently verifiable onchain. That structure targets firms that want Bitcoin exposure without relying on less transparent wrapped products. Circle described the token as a “more secure and neutral” option for institutional market use.
The company said the product is aimed at OTC desks, market makers, and lending protocols. It is also designed for firms that need tokenized BTC for collateral, trading, and settlement. As a result, Circle is framing cirBTC as core market infrastructure, not a retail product.
Circle also said cirBTC is being built to work across supported blockchains and the wider DeFi ecosystem. That design could help institutions move Bitcoin liquidity into onchain venues more easily. It also connects the token with Circle’s broader payments, liquidity, and tokenization services.
Ethereum and Arc will host the first rollout
Circle said cirBTC will launch first on Ethereum and Arc, Circle’s blockchain project. The company also plans to integrate the token with USDC and Circle Mint. Those links place cirBTC inside Circle’s native product stack from the start.
The setup could support trading desks that move between dollar liquidity and Bitcoin-based collateral. It may also help firms manage issuance, redemption, and settlement through familiar Circle channels. Circle has not yet shared a wider rollout schedule for other networks.
The launch follows Circle’s product direction for 2026 and its push into market infrastructure. Circle said that strategy centers on stablecoins, payments rails, blockchain infrastructure, and developer tools. It described that broader goal as building the “internet financial system.”
Circle joins a market led by WBTC and cbBTC
Circle is entering a wrapped Bitcoin market that already has large and established incumbents. WBTC carries a market cap of about $8 billion, based on the company statement. Coinbase’s cbBTC stands near $6 billion, showing existing demand for tokenized Bitcoin liquidity.
Those products are used across trading, lending, and collateral markets onchain. Circle is trying to win institutions that want clearer reserve data and direct integrations. The company is also using its existing brand in stablecoins and payments to enter the segment.
cirBTC extends Circle’s business beyond dollar tokens and deeper into tokenized asset infrastructure. It also gives Circle another asset tied to its liquidity and settlement network. With that launch, Circle is directly targeting the wrapped Bitcoin market with a new branded product.
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