CoinDesk
Circle Internet (CRCL) launched cirBTC on Ethereum, a 1:1 wrapped bitcoin token designed to let holders route BTC into DeFi protocols including lending markets, DEXs, tokenized assets and stablecoin vaults. The product puts Circle in direct competition with Coinbase's cbBTC and the long-standing wBTC, the two tokens that together dominate a synthetic BTC market hovering between $12.5B and $13.5B.
wBTC, introduced in 2019 and custodied by BitGo Holdings, remains the largest at roughly $7.3B in market cap. Coinbase's cbBTC, which launched in 2024, sits just under $5.4B. Together the two control the overwhelming majority of wrapped BTC float, with cirBTC entering as a third major institutional-grade option.
Why it matters
Circle is explicitly pitching cirBTC at institutions that already allocate primarily to bitcoin and have built trust in Circle through USDC, the second-largest stablecoin at over $75B in circulation. The pitch leans on the stablecoin credibility the company spent years building rather than competing on custody novelty. Synthetic BTC exists because Bitcoin's base layer lacks the programmability to plug into Ethereum's DeFi stack, so the race is effectively over which regulated, institutionally recognisable issuer gets the wrapped BTC mandate.
Market impact
Wrapped bitcoin is still a small slice of the bitcoin ecosystem, representing roughly 1% of BTC's approximately $1.25T total market cap. Even modest institutional migration into cirBTC could pressure cbBTC's growth trajectory and force wBTC's BitGo custodian to defend its incumbent lead. Watch for initial TVL listings on the major Ethereum lending markets and DEXs as the first measurable signal of distribution.
Frequently asked questions
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What is cirBTC and how does it work?
cirBTC is a token issued by Circle Internet on Ethereum, backed 1:1 by bitcoin. It lets holders use their BTC exposure inside Ethereum-based DeFi protocols — lending markets, DEXs, tokenized assets and stablecoin vaults — without selling the underlying bitcoin.
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How does cirBTC compare to wBTC and cbBTC?
wBTC, launched in 2019 and custodied by BitGo Holdings, is the largest at roughly $7.3B. Coinbase's cbBTC, launched in 2024, sits just under $5.4B. cirBTC enters as a third institutional-grade option, with Circle's pitch anchored in the institutional trust it built through USDC.
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Why would an institution pick cirBTC over Coinbase's cbBTC?
Circle is targeting bitcoin-heavy institutions that already know and trust its infrastructure through USDC, the second-largest stablecoin at over $75B in circulation. For those counterparties, cirBTC offers a wrapped BTC option from a familiar regulated issuer rather than a new custodial relationship.
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How large is the wrapped bitcoin market?
Total synthetic bitcoin tokens combined sit between $12.5B and $13.5B in market cap, representing roughly 1% of bitcoin's total value of around $1.25T. It remains a niche but institutionally significant segment of the broader crypto market.
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What signal should investors watch after cirBTC's launch?
Initial TVL listings on the major Ethereum lending markets and DEXs are the cleanest early measure of cirBTC distribution. Sustained growth there, paired with any corresponding slowdown in cbBTC inflows, would indicate Circle is winning institutional share rather than just adding a third competitor.
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