Circle Enters Wrapped Bitcoin Market with cirBTC Launch

Highlights:

• Circle enters the wrapped Bitcoin market with cirBTC for institutional users.
• cirBTC will launch first on Ethereum and Arc with on-chain reserve checks.
• Circle targets desks and lenders seeking transparent Bitcoin liquidity.

Stablecoin issuer Circle is preparing to enter the tokenized Bitcoin market with cirBTC, a product for trading and lending desks. According to the press release, cirBTC will carry 1:1 backing with Bitcoin reserves, with counterparties verifying those reserves on-chain. Circle is pitching the token as an option for institutions seeking broader Bitcoin utility in decentralized finance.

Circle Enters into Bitcoin Infrastructure After Stablecoins

The launch is significant because Circle has built its reputation on USDC and EURC, not tokenized Bitcoin. Now it wants to extend that infrastructure model to a new market. According to the company, cirBTC will connect with USDC, Circle Mint, and Arc in one stack. Therefore, Circle wants issuance, redemption, liquidity, and settlement within one system.

Circle said cirBTC will launch first on Ethereum and Arc, while multichain support will follow later. The company is targeting firms that need cross-chain movement without scattered infrastructure. It also named OTC desks, market makers, and lending protocols as core users. As a result, the product enters the market as an institutional tool, not a retail token.

Circle Wrapped Bitcoin is coming.

Backed 1:1 by BTC and readily verifiable onchain, cirBTC is being built to work seamlessly with Circle infrastructure and the broader DeFi ecosystem.

Learn more: https://t.co/wWzVBZdIz1 pic.twitter.com/Db5U3InaNA

— Circle (@circle) April 2, 2026

Rachel Mayer, a Circle and Arc product executive, linked the product to a DeFi problem. In a post on X, she asserted that Bitcoin has been left out of a lot of DeFi strategies due to a lack of trust among the users in the wrapper. She said that cirBTC covers it with complete backing and on-chain verification. She further added that cirBTC solves it with full support and on-chain verification. 

The Market Already has Strong Rivals and Deep Liquidity

Circle is moving into an arena dominated by BitGo and Coinbase. BitGo’s WBTC still leads the sector with a market capitalization of about $8 billion. Meanwhile, Coinbase’s cbBTC has soared to approximately $5.9 billion since its launch. The two products combined have the majority share in the supply and liquidity in the market.

Several exchanges also launched their own Bitcoin-backed tokens, although they remain much smaller by comparison. Kraken, Binance, Bitget, Gate, Huobi, and OKX have all introduced versions that can be used in cross-chain trading or in DeFi use. However, most market attention still stays with WBTC and cbBTC.

Circle sees a larger opening behind those figures. The estimated $1.7 trillion in Bitcoin, which is still sitting outside DeFi, supports Circle’s view that poor infrastructure, not weak demand, has slowed participation. Therefore, its wrapped Bitcoin product aims to attract firms seeking yield, liquidity, and programmability without wrapper concerns.

Circle Links cirBTC to a Broader Institutional Strategy

Jeremy Allaire, Circle’s co-founder and chief executive, echoed that view in a post on X. He said Circle is extending the infrastructure behind USDC, EURC, and USYC to Bitcoin. He described cirBTC as neutral infrastructure for new on-chain BTC applications.

cirBTC is coming. We are bringing the same infra that supports USDC, EURC and USYC to the largest digital asset, creating a neutral infrastructure for new applications for onchain BTC. Read more below. https://t.co/TRAgM78b2u

— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) April 2, 2026

The company has not announced a launch date, but it has opened a waitlist for institutions. This step suggests Circle wants to line up users before live trading begins. Meanwhile, the inclusion of Arc ties cirBTC to Circle’s blockchain plans. The company aims to introduce a native token for its EVM-compatible Arc Layer 1 blockchain, anticipated to go mainnet this year. Furthermore, the firm already manages USYC after its Hashnote acquisition.