Circle bets on cirBTC to unlock Bitcoin yield as DeFi demand grows

Circle, the primary issuer of the second-largest USD-pegged stablecoin USDC, recently made public its goal to increase Bitcoin’s utility with the launch of cirBTC, a new wrapped Bitcoin token that is backed 1:1 by real Bitcoin held on the blockchain. 

This information was disclosed after the stablecoin issuer earlier shared a statement on its website, noting that Circle Internet Group is entering the wrapped Bitcoin space with a new version called cirBTC. The company also mentioned that this wrapped Bitcoin token is fully backed by real BTC and was adopted to drive utility for the original, largest cryptocurrency, similar to other wrapped Bitcoin tokens.

Afterward, Circle noted that cirBTC aims to offer institutions a highly secure, neutral wrapped BTC alternative. Meanwhile, to demonstrate the seriousness of the situation, reports from reliable sources noted that a waiting list has been established for investors interested in this new asset.

Circle intends to make a significant move in the crypto industry 

Circle earlier mentioned that cirBTC will integrate seamlessly with its existing tech systems, including Arc, its custom Layer 1 blockchain purpose-built for stablecoin finance, and the Circle Mint platform, which allows businesses to directly mint and redeem USDC stablecoins 1:1 with fiat currency, bypassing third-party intermediaries. Moreover, the firm noted that it will introduce the new token on both Arc and the Ethereum mainnet. 

At this point, analysts conducted research and found that USDC, the second-largest dollar-backed stablecoin, and EURC, the largest euro-stablecoin, are available to users via Circle Mint.

In the meantime, since other wrapped BTC tokens, such as Coinbase’s cbBTC, already exist, Circle intends to establish its wrapped BTC token as the premier, institutional-grade global standard. To highlight its unique features compared to other wrapped BTC tokens, the stablecoin issuer emphasized that cirBTC offers the security, neutrality, and performance required by OTC desks, market makers, and lending protocols.

Additionally, sources noted that institutional users tend to enjoy verifiable on-chain access to BTC in both traditional finance (TradFi) and decentralized finance (DeFi). Therefore, it is worth noting that the cirBTC signifies the Circle’s strategic expansion beyond stablecoins into tokenized products and infrastructure.

To remain competitive, the company intends to manage its wrapped Bitcoin token with the same standards as USDC, specifically citing steady issuance, auditable reserves, and liquidity. At this moment, reports indicate that cirBTC is designed for institutions traditionally hesitant to adopt digital assets amid concerns about transparency and custodial risk.

Following this discovery, Rachel Mayer, VP of product at Circle and Arc blockchain, shared a post on social media platform X, noting that, “Bitcoin has been sidelined in DeFi not because people lack interest in yield or liquidity but due to trust issues with the wrapper.” Hence, based on her argument, “cirBTC addresses this concern: it’s 1:1 backed, verifiable on-chain, and built on trusted infrastructure.”

Several analysts also weighed in on the topic of discussion. They mentioned that Circle strongly believes that its established reputation and comprehensive flexibility will position its wrapped Bitcoin token as an ideal solution for institutions looking to maximize BTC utilization.

Basically, the stablecoin issuer anticipates demand for Bitcoin in DeFi lending and borrowing applications. According to reports from reliable sources, utilizing a wrapped Bitcoin product enables users to actively participate in DeFi protocols and smart contracts on networks beyond the native Bitcoin blockchain.

Another Circle executive who commented on the situation was Jeremy Allaire, the company’s co-founder and CEO. He noted in a post on X that, “We are providing the same infrastructure that supports USDC, EURC, and USYC for the largest digital asset, creating a neutral foundation for new applications of on-chain BTC.”

Meanwhile, sources noted that Circle’s stock has risen 8% over the past year to a current trading price of $89.52 per share. 

Circle positions itself as a leader in the crypto market 

Last month, reports noted that Circle’s stock opened at $31 and later soared to about $299 by June 23, nearly tripling on its first day of trading after going public on June 5, 2025.

Nonetheless, investors who entered the market at the peak experienced challenges thereafter. Consequently, the stock declined sharply to approximately $50 towards the end of February 2026. 

Even so, analysts admitted that the stablecoin issuer has succeeded in this tough market, attributing this to regulatory shifts in the American financial system.