Circle has introduced cirBTC, a token fully backed 1:1 by Bitcoin, enabling traders to utilize their Bitcoin assets within decentralized finance (DeFi) protocols.
By Jamie Crawley|Edited by Sheldon Reback Jun 9, 2026, 10:14 a.m. 2 min readMake preferred on (Sandali Handagama/ CoinDesk)Key Points:
- Circle's wrapped bitcoin is now operational on Ethereum, as the stablecoin provider seeks to rival Coinbase in the synthetic bitcoin sector.
- The company is targeting institutional investors who concentrate their crypto investments on bitcoin and are likely to trust Circle's established infrastructure due to its prominence in the stablecoin arena.
- The overall market capitalization for synthetic bitcoin is currently estimated between $12.5 billion and $13.5 billion, indicating it remains a specialized segment.
Circle Internet's (CRCL) new token, cirBTC, which is BTC$63,271.85, is now available on Ethereum, allowing the firm, recognized primarily for its USDC stablecoin, to compete with Coinbase (COIN) in the synthetic bitcoin market.
The New York-based company designed cirBTC to be a 1:1 backed token by Bitcoin, facilitating traders to leverage their bitcoin holdings in various DeFi protocols, such as lending platforms, decentralized exchanges (DEXs), and tokenized assets.
Wrapped or synthetic bitcoin tokens were created to fill the gap for DeFi operations on the Bitcoin blockchain. Many crypto enthusiasts prefer to hold bitcoin due to its higher valuation compared to other cryptocurrencies. However, using it for DeFi poses challenges due to the lack of programming capabilities inherent in the Bitcoin network, unlike Ethereum.
The first of these tokens, wrapped bitcoin (wBTC), launched in 2019 and remains the largest, with a market valuation around $7.3 billion. Coinbase's (COIN) cbBTC, introduced in 2024, has a market cap just shy of $5.4 billion.
Circle aims to market cirBTC to institutions focusing on bitcoin allocations, leveraging its reputation and infrastructure, as the company's USDC is the second-largest stablecoin with a market cap exceeding $75 billion.
The launch of cirBTC positions Circle to compete directly with Coinbase and wBTC's main custodian, BitGo Holdings (BTGO), for leadership in the institutional synthetic bitcoin market.
The combined market cap of all synthetic bitcoin tokens currently fluctuates between $12.5 billion and $13.5 billion, representing about 1% of bitcoin's total value, which is approximately $1.25 trillion.
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By Ian Allison|Edited by Sheldon Reback2 hours agoThis stablecoin-backed card is intended for instances where traditional credit card approval is not feasible.
Highlights:
- Cardless and Coinbase are launching a payment card that allows stablecoin holders to use their crypto as collateral when they cannot secure a standard unsecured credit card.
- Applicants can reserve a part of their USDC assets on Coinbase as collateral, while still earning yields on those pledged funds.