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

Publicly traded stablecoin issuer Circle wants to unlock inferior for the world’s largest crypto asset. Its solution? A caller wrapped Bitcoin token—cirBTC—backed 1:1 with autochthonal on-chain Bitcoin reserves. 

“Bitcoin is sitting connected the sidelines of DeFi. Not due to the fact that radical don't privation output oregon liquidity—it's due to the fact that they don't spot the wrapper,” Rachel Mayer, VP of merchandise astatine Circle and the Arc blockchain, posted connected X. 

“cirBTC is Circle's answer: 1:1 backed, on-chain-verifiable, and built connected infrastructure the marketplace already trusts,” she added. 

Circle claims its “proven credibility” and “full-stack flexibility” volition marque cirBTC an charismatic alternate for institutions looking to adhd inferior to BTC.

In different words, the steadfast expects that users privation to enactment their Bitcoin to work, similar via lending oregon borrowing successful decentralized concern (DeFi) applications. Using a wrapped Bitcoin merchandise allows them to prosecute with DeFi protocols and astute contracts connected networks beyond the autochthonal Bitcoin blockchain. 

The token volition archetypal motorboat connected 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 aforesaid infra that supports USDC, EURC, and USYC to the largest integer asset, creating a neutral infrastructure for caller applications for on-chain BTC,” Circle co-founder and CEO Jeremy Allaire posted connected X. 

Circle’s wrapped alternate joins existing wrapped Bitcoin tokens similar BitGo’s Wrapped Bitcoin (WBTC) and cbBTC, a akin token offered by Coinbase that tin beryllium utilized connected aggregate blockchains. 

But the alternate options are not escaped of controversy.

In August 2024, the custodian of WBTC announced it was partnering with BiT Global, a steadfast with connections to Tron laminitis Justin Sun. That invited criticisms from immoderate successful the crypto community, who were wary of the transportation to Sun. 

Following that move, Coinbase launched cbBTC, earning its ain criticisms from Sun, who mocked the plus arsenic the “central slope of Bitcoin.” 

Following the motorboat of its ain wrapped Bitcoin product, Coinbase yet delisted WBTC from its crypto exchange, leading to a suit from BiT Global that alleged a “predatory and unfair move.” That suit was yet dropped.

At the clip of writing, BitGo’s WBTC remains the largest wrapped Bitcoin alternative, maintaining a marketplace headdress of astir $8 cardinal astatine the clip of writing. Coinbase’s cbBTC has astir a $6 cardinal marketplace cap. 

Shares successful Circle (CRCL) closed down 0.53% connected Thursday, precocious changing hands astir $90.26. They person present fallen astir 40% successful the past six months.