Circle’s cirBTC Takes Aim at Coinbase’s $6 Billion cbBTC Months Before Key Deal Renewal
Circle introduced cirBTC on April 2, 2026, a wrapped Bitcoin (BTC) token backed 1:1 by native BTC with real-time onchain reserve verification, marking the agency’s first enlargement past stablecoins into tokenized BTC infrastructure.
The announcement places Circle in direct competitors with its largest distribution associate at a commercially delicate second.
A Trust Problem Worth $1.7 Trillion
Circle, the issuer of USDC stablecoin, frames cirBTC as a impartial, institution-grade different to current wrapped BTC merchandise. It is constructed on the identical compliance and issuance foundations that assist USDC and EURC.
“Bitcoin is sitting on the sidelines of DeFi. Not as a result of folks don’t need yield or liquidity — it’s as a result of they don’t belief the wrapper,” said Circle VP of Product Rachel Mayer, figuring out the core market thesis behind cirBTC.
The wrapped BTC sector has confronted sustained credibility points. In August 2024, BitGo’s Wrapped Bitcoin (WBTC) drew criticism after its custodian partnered with BiT Global, a agency linked to Tron founder Justin Sun.
Coinbase launched cbBTC (Coinbase Wrapped BTC) shortly after, and presently holds roughly $6 billion in circulating provide in response to CoinGecko information.
Circle is positioning cirBTC as a extra clear possibility. Reserves shall be independently verifiable onchain in actual time, with no reliance on third-party attestations.
The token launches first on Ethereum and Arc, Circle’s Layer-1 blockchain, with multichain assist deliberate. Target customers embrace OTC desks, market makers, lending protocols, and derivatives platforms.
Partnership Tension Ahead of August Renewal
The timing carries weight past product competitors. Circle and Coinbase operate under a revenue-sharing agreement tied to USDC reserve income, up for renewal in August 2026.
Under the present deal, Coinbase receives 100% of curiosity on USDC held on its platform and a 50/50 break up on off-platform holdings.
Analysts estimate that Coinbase collects over $900 million yearly from this association.
Crypto analyst Omar flagged the aggressive sign immediately, noting that Circle focusing on cbBTC “appears like a direct shot” at Coinbase forward of that renewal.
Circle CEO Jeremy Allaire described cirBTC as infrastructure moderately than rivalry, saying the product extends the identical foundations supporting USDC to “the biggest digital asset.”
“cirBTC is coming. We are bringing the identical infra that helps USDC, EURC, and USYC to the biggest digital asset, making a impartial infrastructure for brand new purposes for onchain BTC,” wrote Allaire.
Still, no launch date has been confirmed, and the product page notes that availability will depend on regulatory approvals.
Whether cirBTC positive aspects institutional traction earlier than cbBTC additional entrenches its $6 billion lead could form how a lot leverage Circle holds when the 2 firms return to the negotiating desk in August.
The submit Circle’s cirBTC Takes Aim at Coinbase’s $6 Billion cbBTC Months Before Key Deal Renewal appeared first on BeInCrypto.
