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

In brief

• Circle is launching cirBTC, a wrapped Bitcoin alternative designed to unlock Bitcoin utility for institutions and investors.
• The token will first launch on Ethereum mainnet and Arc, Circle's stablecoin focused blockchain.
• cirBTC will join notable wrapped Bitcoin products like BitGo's WBTC and Coinbase's cbBTC. Publicly traded stablecoin issuer Circle wants to unlock utility for the world’s largest crypto asset. Its solution? A new wrapped Bitcoin token—cirBTC—backed 1:1 with native on-chain Bitcoin reserves.  “Bitcoin is sitting on the sidelines of DeFi. Not because people don't want yield or liquidity—it's because they don't trust the wrapper,” Rachel Mayer, VP of product at Circle and the Arc blockchain, posted on X.  “cirBTC is Circle's answer: 1:1 backed, on-chain-verifiable, and built on infrastructure the market already trusts,” she added. 

Circle Wrapped Bitcoin is coming.

Backed 1:1 by BTC and readily verifiable onchain, cirBTC is being built to work seamlessly with Circle infrastructure and the broader DeFi ecosystem.

Learn more: pic.twitter.com/Db5U3InaNA

— Circle (@circle) April 2, 2026 Circle claims its “proven credibility” and “full-stack flexibility” will make cirBTC an attractive alternative for institutions looking to add utility to BTC. In other words, the firm expects that users want to put their Bitcoin to work, like via lending or borrowing in decentralized finance (DeFi) applications. Using a wrapped Bitcoin product allows them to engage with DeFi protocols and smart contracts on networks beyond the native Bitcoin blockchain.  The token will first launch on Ethereum mainnet and Arc, the stablecoin-focused blockchain incubated by the firm, with ready-made integrations with its dollar-backed stablecoin USDC and Circle Mint, its stablecoin issuance platform.  “We are bringing the same infra that supports USDC, EURC, and USYC to the largest digital asset, creating a neutral infrastructure for new applications for on-chain BTC,” Circle co-founder and CEO Jeremy Allaire posted on X.  Circle’s wrapped alternative joins existing wrapped Bitcoin tokens like BitGo’s Wrapped Bitcoin (WBTC) and cbBTC, a similar token offered by Coinbase that can be used on multiple blockchains.  But the alternative options are not free of controversy. In August 2024, the custodian of WBTC announced it was partnering with BiT Global, a firm with connections to Tron founder Justin Sun. That invited criticisms from some in the crypto community, who were wary of the connection to Sun.  Following that move, Coinbase launched cbBTC, earning its own criticisms from Sun, who mocked the asset as the “central bank of Bitcoin.”  Following the launch of its own wrapped Bitcoin product, Coinbase ultimately delisted WBTC from its crypto exchange, leading to a lawsuit from BiT Global that alleged a “predatory and unfair move.” That suit was eventually dropped. At the time of writing, BitGo’s WBTC remains the largest wrapped Bitcoin alternative, maintaining a market cap of nearly $8 billion at the time of writing. Coinbase’s cbBTC has nearly a $6 billion market cap.  Shares in Circle (CRCL) closed down 0.53% on Thursday, recently changing hands around $90.26. They have now fallen nearly 40% in the last six months.