Circle launched cirBTC on Ethereum on June 8, a token backed one-for-one by bitcoin and aimed squarely at the institutional market for wrapped BTC. The USDC issuer said each cirBTC token corresponds to native bitcoin held in custody by a regulated Circle entity, kept separate from the company’s own balance sheet. Reserves are verified directly on the blockchain through Chainlink Proof of Reserve rather than periodic attestation reports. The move puts Circle in direct competition with BitGo’s Wrapped Bitcoin, which holds roughly $8 billion in market value, and Coinbase Wrapped Bitcoin at about $5.9 billion. For trading desks and lenders that want to use bitcoin as collateral without selling it, cirBTC adds a new option from one of crypto’s largest regulated issuers.
Wrapped bitcoin is a token that represents bitcoin on another blockchain, backed one-for-one by BTC held in custody, so holders can use it in applications that bitcoin’s own network does not support.
Key takeaways
- Circle’s cirBTC went live on Ethereum on June 8, backed 1:1 by native bitcoin in regulated custody and segregated from corporate assets.
- Reserves are checked through Chainlink Proof of Reserve, giving counterparties continuous on-chain visibility instead of monthly attestation cycles.
- cirBTC targets the institutional wrapped bitcoin market led by BitGo’s WBTC at about $8 billion and Coinbase Wrapped Bitcoin at about $5.9 billion.
- The token can be minted and redeemed through Circle Mint, pairs with USDC, and is set to expand to other chains through Circle’s Arc network.
Published: June 9, 2026 16:00 UTC
What Circle announced
In its June 8 announcement, Circle said cirBTC is built for institutions active in lending, market making, treasury management, over-the-counter trading, and settlement. The token lets firms move bitcoin collateral through Ethereum smart contracts while the underlying BTC stays in custody.
Circle first signaled the product in April, describing it as a neutral wrapped bitcoin option for institutional users. The company chose Ethereum as the first network because much institutional DeFi, tokenization, and liquidity activity already runs there. cirBTC can be created and redeemed through Circle Mint, the company’s platform for institutional digital asset liquidity, and Circle says pairing it with USDC lets bitcoin collateral and dollar liquidity sit inside the same workflow.
The launch follows the same template Circle used with USDC, where a regulated issuer and clear reserves became the pitch to institutions. cirBTC applies that approach to bitcoin, the asset most treasury desks already hold.
Why it matters for the wrapped bitcoin market
The wrapped bitcoin category is concentrated and large. BitGo’s Wrapped Bitcoin remains the biggest product at roughly $8 billion in market value, followed by Coinbase Wrapped Bitcoin at about $5.9 billion since its September 2024 debut. Kraken, Binance, Bitget, and OKX run their own wrapped BTC tokens as well.
Circle’s argument is structural. The company does not operate a centralized exchange, a decentralized exchange, or a lending protocol, so it says institutions can use cirBTC across venues and counterparties without worrying that the issuer also competes with them. That neutrality claim is the same one that helped USDC win bank and fintech adoption against rivals tied to trading platforms.
The timing is notable. Circle is pushing deeper into on-chain infrastructure at a moment when banks and institutions are testing tokenized assets and settlement rails, and when bitcoin trades near $62,700 after a volatile stretch.
How the reserve model works
cirBTC’s main technical pitch is transparency. Instead of relying on a custodian’s word or a monthly attestation, Circle uses Chainlink Proof of Reserve to publish backing data on-chain. Proof of Reserve is a service that lets a protocol confirm that tokens are fully backed by checking the custody wallets directly on the blockchain.
Counterparties can verify cirBTC’s bitcoin holdings through multiple wallet addresses visible on the bitcoin network, which Circle says gives trading firms, protocols, and risk teams continuous insight into reserves. That design responds to a recurring concern in DeFi, where collateral tokens have at times traded without clear proof that the assets behind them exist.
What comes next
Circle said cirBTC will expand beyond Ethereum over time through Arc, its layer-1 blockchain, as part of a multichain strategy. A layer-1 blockchain is a base network that settles its own transactions rather than relying on another chain. Future Arc support would extend cirBTC to more environments while keeping the same custody and verification standards.
Adoption is the open question. WBTC’s lead reflects years of integration across lending and DeFi protocols, and switching collateral standards is slow. Circle’s brand and regulatory posture give it a credible entry, but cirBTC still has to earn listings, liquidity, and risk-team approval before it dents the incumbents. The next signals to watch are which protocols accept cirBTC as collateral and how quickly its supply grows.
Frequently asked questions
What is cirBTC?
cirBTC is a wrapped bitcoin token from Circle that launched on Ethereum on June 8, 2026. Each token is backed one-for-one by native bitcoin held in regulated custody and separated from Circle’s corporate assets, letting institutions use BTC as collateral in Ethereum-based applications.
How is cirBTC different from WBTC?
cirBTC verifies its reserves on-chain through Chainlink Proof of Reserve rather than periodic attestations, and Circle does not run an exchange or lending protocol. BitGo’s WBTC is the largest wrapped bitcoin product at about $8 billion, while cirBTC is a new entrant.
Who is cirBTC built for?
Circle says cirBTC targets institutions in lending, market making, treasury management, over-the-counter trading, and settlement. It is not aimed at retail users, and it can be minted or redeemed through Circle Mint and paired with USDC.
