Here’s a further refined rewrite with a tighter, more authoritative news style:
Circle has launched cirBTC, a 1:1 Bitcoin-backed ERC-20 token on Ethereum, entering direct competition with WBTC, which leads the wrapped Bitcoin market with about $9 billion in value and roughly 85% share. Its key distinction is real-time, on-chain proof of reserves that removes reliance on third-party attestations.
Debuting on June 8, 2026, cirBTC is built for institutional users—including OTC desks, market makers, lenders, and DeFi protocols—seeking Bitcoin exposure as collateral within Ethereum-based financial systems.
The market is already well established. WBTC, issued by BitGo in 2019, remains dominant, while cbBTC from Coinbase, launched in 2024, has rapidly scaled to around $5.9 billion in value, becoming the strongest competitor to date.
Circle is positioning cirBTC as a transparency-first alternative, leveraging its institutional credibility and infrastructure developed through USDC.
Continuous On-Chain Verification
The core innovation behind cirBTC is its integration with Chainlink Proof of Reserve, enabling continuous verification of Bitcoin backing. Each token is backed by BTC held in segregated, regulated custody, with reserve data publicly verifiable in real time on the Bitcoin blockchain.
This design eliminates dependence on monthly audits, custodian disclosures, or delayed attestation systems.
In contrast, WBTC relies on BitGo as its sole custodian, with transparency achieved through wallet disclosures and multisignature governance. While widely trusted, it remains structurally more centralized.
Following earlier concerns around custodial bridge failures such as RenBTC, demand for more transparent verification systems has grown, a gap Circle is directly targeting.
CirBTC reserves are fully separated from Circle’s corporate balance sheet. Minting and redemption occur through Circle Mint, extending the company’s USDC infrastructure into Bitcoin tokenization and enabling institutions to use BTC in DeFi without liquidating holdings.
A Small but Rapidly Expanding Market
The total tokenized Bitcoin market is estimated at $15–20 billion, still under 2% of Bitcoin’s roughly $1.7 trillion market capitalization. Despite its size, the sector is increasingly viewed as a key growth area driven by institutional demand for regulated on-chain exposure.
WBTC remains the leader with $8–9 billion in circulation, followed by cbBTC at approximately $5.9 billion, which has posted strong early growth. The remaining supply is split across exchange-issued wrapped BTC products from platforms such as Kraken, Binance, Bitget, and OKX.
Circle’s entry does not immediately disrupt market share, but it introduces a major regulated issuer with global distribution capabilities that few competitors can match.
A defining advantage of cirBTC is neutrality. Unlike exchange-issued tokens, Circle does not operate a trading venue, lending platform, or decentralized exchange. This structural separation reduces conflicts of interest and limits information leakage for institutional users.
For hedge funds, market makers, and institutional allocators, that independence is a key operational advantage when deploying capital across DeFi ecosystems.
