USDC Stablecoin Issuer Circle Unveils New Token to Give Bitcoin Extra Utility

Publicly traded stablecoin issuer Circle needs to unlock utility for the world’s largest crypto asset. Its resolution? A brand new wrapped Bitcoin token—cirBTC—backed 1:1 with native on-chain Bitcoin reserves. 

“Bitcoin is sitting on the sidelines of DeFi. Not as a result of folks don’t need yield or liquidity—it is as a result of they do not belief the wrapper,” Rachel Mayer, VP of product at Circle and the Arc blockchain, posted on X. 

“cirBTC is Circle’s reply: 1:1 backed, on-chain-verifiable, and constructed on infrastructure the market already trusts,” she added. 

Circle claims its “confirmed credibility” and “full-stack flexibility” will make cirBTC a lovely various for establishments wanting so as to add utility to BTC.

In different phrases, the agency expects that customers need to put their Bitcoin to work, like through lending or borrowing in decentralized finance (DeFi) purposes. Utilizing a wrapped Bitcoin product permits them to interact with DeFi protocols and good contracts on networks past the native Bitcoin blockchain. 

The token will first launch on Ethereum mainnet and Arc, the stablecoin-focused blockchain incubated by the agency, with ready-made integrations with its dollar-backed stablecoin USDC and Circle Mint, its stablecoin issuance platform. 

“We’re bringing the identical infra that helps USDC, EURC, and USYC to the most important digital asset, making a impartial infrastructure for brand new purposes for on-chain BTC,” Circle co-founder and CEO Jeremy Allaire posted on X. 



Circle’s wrapped various joins current wrapped Bitcoin tokens like BitGo’s Wrapped Bitcoin (WBTC) and cbBTC, an identical token provided by Coinbase that can be utilized on a number of blockchains. 

However the various choices should not freed from controversy.

In August 2024, the custodian of WBTC introduced it was partnering with BiT International, a agency with connections to Tron founder Justin Solar. That invited criticisms from some within the crypto group, who had been cautious of the connection to Solar. 

Following that transfer, Coinbase launched cbBTC, incomes its personal criticisms from Solar, who mocked the asset because the “central financial institution of Bitcoin.” 

Following the launch of its personal wrapped Bitcoin product, Coinbase in the end delisted WBTC from its crypto alternate, resulting in a lawsuit from BiT International that alleged a “predatory and unfair transfer.” That go well with was finally dropped.

On the time of writing, BitGo’s WBTC stays the most important wrapped Bitcoin various, sustaining a market cap of practically $8 billion on the time of writing. Coinbase’s cbBTC has practically a $6 billion market cap. 

Shares in Circle (CRCL) closed down 0.53% on Thursday, just lately altering palms round $90.26. They’ve now fallen practically 40% within the final six months.