Crypto News
Circle launched cirBTC, a wrapped Bitcoin token on Ethereum, with CEO Jeremy Allaire confirming the rollout in a public post and flagging that Arc Network is next. Arc is Circle's stablecoin-native Layer 1, backed by $222M from a16z, BlackRock, and Apollo, and has already processed more than 244M testnet transactions.
Why it matters
cirBTC enters a market currently dominated by Wrapped Bitcoin (WBTC), which holds roughly $9B in total value. As a Circle-issued, fully reserved alternative, it gives institutions and DeFi protocols a wrapped BTC option tied to a US-regulated issuer rather than a custodial third party — a structural shift in who underwrites Bitcoin's on-chain liquidity on Ethereum.
Market impact
The launch is the first asset beyond USDC on Circle's stack and a deliberate bridge into Arc, where USDC will be the native gas token. Watch WBTC TVL, BTC-denominated liquidity on Ethereum mainnet DEXs, and any cross-listing of cirBTC on lending markets like Aave or Compound — those are the demand signals that will determine whether cirBTC captures share or sits alongside WBTC as a secondary rail.
Frequently asked questions
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What is cirBTC?
cirBTC is a wrapped Bitcoin token issued by Circle on Ethereum. It represents BTC held in reserve by Circle, giving holders an ERC-20 version of Bitcoin usable across Ethereum DeFi.
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How does cirBTC differ from WBTC?
WBTC is issued through a third-party custodial arrangement, while cirBTC is issued directly by Circle — a US-regulated issuer. The economic function is similar (BTC liquidity on Ethereum), but the underwriting entity is different.
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How big is the wrapped Bitcoin market cirBTC is targeting?
Wrapped Bitcoin (WBTC) holds roughly $9B in total value on Ethereum, making it the dominant wrapped BTC product that cirBTC will compete with for market share.
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What is Arc Network and how does it connect to cirBTC?
Arc Network is Circle's stablecoin-native Layer 1 blockchain, backed by $222M from a16z, BlackRock, and Apollo, with USDC as its native gas token. cirBTC is the first asset beyond USDC on Circle's stack and a bridge for BTC-denominated flows once Arc goes mainnet.
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Who is behind Arc Network?
Arc is a Circle project that has raised $222M from Andreessen Horowitz (a16z), BlackRock, and Apollo, and has processed more than 244M testnet transactions ahead of its mainnet launch.
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