Circle Launches cirBTC Wrapped Bitcoin on Ethereum, Challenges Coinbase and BitGo Dominance

According to Odaily, Circle has launched cirBTC, a wrapped Bitcoin product on Ethereum fully backed by BTC on a 1:1 basis, targeting institutional investors seeking to access Bitcoin through DeFi applications including lending, decentralized exchanges, and stablecoins.

The wrapped Bitcoin market is currently dominated by wBTC (approximately $7.3 billion in market cap) and Coinbase's cbBTC (roughly $5.4 billion). With this launch, Circle competes directly against these established players. The total wrapped Bitcoin market is valued at $12.5 billion to $13.5 billion, representing approximately 1% of Bitcoin's roughly $1.25 trillion market cap.