Circle has launched cirBTC, a new token on the Ethereum blockchain that is fully backed 1:1 by Bitcoin. This move aims to position Circle against Coinbase in the growing synthetic bitcoin market.
With cirBTC, traders can now utilize their Bitcoin assets within decentralized finance (DeFi) protocols, including lending platforms and decentralized exchanges. Circle, known for its USDC stablecoin, is targeting institutional investors who prefer Bitcoin and are likely to trust Circle's well-established infrastructure.
The market capitalization for synthetic bitcoin, which includes tokens like wrapped bitcoin (wBTC) and Coinbase's cbBTC, is currently estimated to be between $12.5 billion and $13.5 billion. WBTC, launched in 2019, holds the largest share with a market cap of around $7.3 billion, while cbBTC, introduced in 2024, is valued at nearly $5.4 billion.
