USDC Stablecoin Issuer Circle Unveils New Token to Give Bitcoin More Utility
Circle is launching cirBTC, a new wrapped Bitcoin token backed 1:1 by native Bitcoin reserves and verifiable on-chain. Designed for use with both Circle’s infrastructure and broader DeFi platforms, cirBTC aims to unlock Bitcoin’s utility for lending, borrowing, and other decentralized finance activities. The token will first launch on Ethereum mainnet and Arc, Circle’s proprietary blockchain, with integrations alongside Circle’s USDC stablecoin and minting platform. Circle emphasizes its credibility and infrastructure as differentiation, addressing existing concerns about trust in wrapped Bitcoin products. cirBTC will compete with current offerings like BitGo’s WBTC and Coinbase’s cbBTC, both of which have faced controversy and shifting custodial relationships. At present, WBTC has a market cap close to $8 billion, and cbBTC about $6 billion. Circle’s move comes amid falling company shares, which are down roughly 40% over six months.
