Circle Launches cirBTC Wrapped Bitcoin Token Targeting Institutional DeFi Users

Stablecoin issuer Circle is launching cirBTC, a wrapped Bitcoin token backed 1:1 with native Bitcoin reserves, initially on Ethereum mainnet and Circle's Arc blockchain, targeting institutional DeFi users with integrations to USDC and Circle Mint. The move positions Circle to compete in a market dominated by BitGo's Wrapped Bitcoin with nearly $8 billion market cap and Coinbase's cbBTC with nearly $6 billion market cap. The wrapped Bitcoin market has seen recent controversy after WBTC's custodian partnered with BiT Global, a firm connected to Tron founder Justin Sun, prompting Coinbase to delist WBTC and launch its own cbBTC alternative. Circle shares closed down 0.53% at $90.26 and have fallen nearly 40% over six months.

Circle's cirBTC Launch and Features

• ▪Circle is launching cirBTC, a wrapped Bitcoin token backed 1:1 with native on-chain Bitcoin reserves
• ▪cirBTC will have ready-made integrations with Circle's dollar-backed stablecoin USDC and Circle Mint

Competitive Landscape of Wrapped Bitcoin Products

• ▪Circle shares (CRCL) closed down 0.53% on Thursday at around $90.26
• ▪Circle shares have fallen nearly 40% in the last six months
• ▪Coinbase launched cbBTC as a wrapped Bitcoin token that can be used on multiple blockchains
• ▪BitGo's Wrapped Bitcoin (WBTC) maintains a market cap of nearly $8 billion
• ▪Coinbase's cbBTC has a market cap of nearly $6 billion

WBTC Controversy and Market Dynamics

• ▪In August 2024, the custodian of WBTC announced a partnership with BiT Global, a firm with connections to Tron founder Justin Sun

Perspective of Crypto community critics of Justin Sun

• ▪Justin Sun mocked Coinbase's cbBTC as the central bank of Bitcoin