Circle introduces cirBTC, a 1:1 bitcoin-backed token on Ethereum, targeting a $12.5 billion synthetic BTC market dominated by Coinbase.
Circle launched cirBTC, a token backed 1:1 by bitcoin (BTC), enabling traders to use bitcoin holdings in decentralized finance (DeFi) protocols on Ethereum. The move challenges Coinbase’s dominance in the wrapped bitcoin market, which has a total market cap fluctuating between $12.5 billion and $13.5 billion.
The synthetic bitcoin market emerged to address Bitcoin’s lack of native programmability for DeFi activities. Wrapped bitcoin (wBTC), introduced in 2019, was the first token to bridge this gap. Circle aims to attract institutional investors already familiar with its stablecoin infrastructure.
Circle’s cirBTC is positioned as a trust alternative for institutions focusing on bitcoin allocations, leveraging the firm’s established presence in the stablecoin market.