USDC stablecoin issuer circuit unveils new token to give Bitcoin more utility

Publicly traded Stable coin Issuer Circle wants to open the utility for the world’s largest crypto asset. Solve it? New wrapped Bitcoin The token — cirBTC — is backed 1:1 with the original on-chain Bitcoin reserves.

“Bitcoin sits on the fringes of decentralized finance. It’s not because people don’t want yield or liquidity — it’s because they don’t trust the envelope,” Rachel Mayer, VP of Product at Circle and the Arc blockchain company, said. Published on X.

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

circle Claims “proven reliability” and “complete flexibility.” It will make cirBTC an attractive alternative for institutions looking to add interest to BTC.

In other words, the company expects users to want to operate their Bitcoin, such as lending or borrowing in decentralized finance (DeFi) applications. Using a wrapped Bitcoin product allows them to transact with DeFi protocols and smart contracts on networks outside of the original Bitcoin domain.

The token will be launched for the first time Ethereum Main network and bracketa stablecoin-focused blockchain that the company has incubated, with ready-made integrations with its dollar-backed stablecoin US dollars and Circle Mint, its stablecoin issuance platform.

“We are bringing the same infrastructure that supports USDC, EURC and USYC to the largest digital assets, creating a neutral infrastructure for new on-chain BTC applications,” said Jeremy Allaire, co-founder and CEO of Circle. Published on X.

The wrapped variant of Circle joins existing Bitcoin tokens such as BitGo Bitcoin wrapped (WBTC) and cbBTC, similar Code provided by Coinbase Which can be used on multiple blockchains.

But alternative options are not without controversy.

In August 2024, the custodian of WBTC announced that it had partnered with BiT Global, a company with connections to Tron founder Justin Sun. Which It sparked criticism from some in the crypto communitywho were wary of contacting Sun.

Following the move, Coinbase launched cbBTC, drawing its own criticism from Sun, who mocked the asset as an asset. “Central Bank of Bitcoin.”

After launching its own wrapped Bitcoin product, Coinbase eventually removed WBTC from its cryptocurrency exchange. Which resulted in a lawsuit from BiT Global Which she claimed was a “predatory and unfair move.” That suit It was eventually dropped.

At the time of writing, BitGo’s WBTC remains the largest encapsulated alternative to Bitcoin, maintaining a market cap of around $8 billion at the time of writing. Coinbase’s CBBTC market cap is approximately $6 billion.

Shares in Circle (CRCL) closed 0.53% lower on Thursday, most recently trading around $90.26. They are now down almost 40% in the past six months.