Circle Launches cirBTC on Ethereum to Compete in Growing Wrapped Bitcoin Market

Circle has introduced cirBTC, a wrapped bitcoin token on the Ethereum network, marking the company’s entry into the competitive synthetic bitcoin market. The token is backed 1:1 by bitcoin, allowing holders to use their BTC in decentralized finance applications without selling their assets.

How cirBTC Brings Bitcoin Into DeFi

Bitcoin remains the largest cryptocurrency, but its network offers limited support for decentralized finance activities. Wrapped bitcoin products solve this challenge by creating tokenized versions of BTC that can operate on programmable blockchains such as Ethereum.

With cirBTC, users can access lending platforms, decentralized exchanges, tokenized assets and stablecoin-based financial services while maintaining exposure to bitcoin.

Competition Intensifies in Wrapped Bitcoin Sector

The synthetic bitcoin market is currently led by wBTC, launched in 2019, with a market value of roughly $7.3 billion. Coinbase’s cbBTC, introduced in 2024, has grown to nearly $5.4 billion.

Circle is targeting institutional investors who already trust its infrastructure through USDC, one of the world’s largest stablecoins with a market capitalization exceeding $75 billion.

Wrapped Bitcoin Market Remains a Niche Segment

Despite increasing adoption, the total value of all wrapped bitcoin tokens remains between $12.5 billion and $13.5 billion. That represents only about 1% of bitcoin’s estimated $1.25 trillion market value, leaving significant room for future growth.