Circle has announced plans to launch a new wrapped Bitcoin asset called cirBTC, marking its expansion into the Bitcoin ecosystem and positioning the company against established providers such as Coinbase and BitGo.
The new token, cirBTC, is expected to launch on Ethereum, backed 1:1 by Bitcoin, and designed primarily for institutional participants such as over the counter trading desks, market makers, and lending protocols. The company stated that the asset aims to deliver a highly secure and neutral wrapped Bitcoin product suited for institutional-grade usage.
Wrapped Bitcoin tokens allow Bitcoin holders to use their assets on other blockchain networks, enabling access to decentralized finance services. Financial institutions that have increased their exposure to Bitcoin are also exploring decentralized finance tools, driving demand for wrapped assets.
Competition Intensifies in the Wrapped Bitcoin Sector
Circle’s entry adds pressure to an already competitive market led by Wrapped Bitcoin (WBTC) and Coinbase Wrapped Bitcoin (cbBTC).
Coinbase introduced cbBTC in September 2024, and it currently holds a market capitalization of about $5.9 billion, with roughly 88,800 tokens in circulation. Meanwhile, BitGo’s WBTC remains the dominant wrapped Bitcoin token, with a market capitalization near $8 billion and about 119,157 tokens circulating. However, this figure is roughly half of its November 2021 peak, when Bitcoin reached its cycle high.
Other crypto exchanges have also introduced alternative wrapped Bitcoin versions, including tokens from Kraken, Gate.io, Binance, Huobi, and OKX, though their market shares remain significantly smaller than the leading two providers.
The combined supply of WBTC and cbBTC currently stands at approximately 208,000 Bitcoin, highlighting the scale of the growing wrapped Bitcoin market.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.