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CryptoMediumUpdated×2•Originally published 9 June 2026•Updated 9 June 2026•
1 min read

Circle Launches cirBTC to Challenge Coinbase Dominance in Wrapped Bitcoin Market

Key Facts

1Circle launched cirBTC on the Ethereum network, a token backed 1:1 by Bitcoin.
2The new product utilizes Chainlink Proof of Reserve for on-chain reserve verification.
3Circle aims to challenge the dominance of Coinbase and WBTC in the $9 billion wrapped bitcoin market.

In a move reflecting intensifying competition for Bitcoin liquidity within decentralized ecosystems, Circle has launched cirBTC on the Ethereum network, a token backed 1:1 by Bitcoin. The new product utilizes Chainlink Proof of Reserve technology to ensure transparent, on-chain verification of reserves. Circle aims to challenge the long-standing dominance of Coinbase and WBTC in the rapidly evolving wrapped bitcoin market.

This launch comes as market data reveals the total market capitalization of synthetic bitcoin now oscillates between $12.5 billion and $13.5 billion, representing barely 1% of BTC's total value. Circle seeks to leverage its reputation as a regulated issuer of USDC to provide a more transparent alternative, especially as demand for trusted assets in DeFi applications grows. According to industry reports, integrating Chainlink technologies provides an additional layer of security that some traditional competing solutions lack.

Looking at market levels, BTC traded at $63,085.99 (at close June 8, 2026) as traders monitor the adoption rate of the new cirBTC by decentralized protocols. Investors should watch the upcoming economic calendar, specifically the US ISM Services PMI data on June 3, which could impact broader risk appetite across the digital asset market.