Circle’s cirBTC holds just 40 BTC despite strong institutional backing
Circle’s new Bitcoin token for Ethereum, called cirBTC, has only 40 tokens in circulation, each backed by Bitcoin, according to the company’s latest reserve report. This is a tiny fraction of the supply held by competing tokens like WBTC and cbBTC, which have thousands of times more Bitcoin locked in their systems.
Wrapped Bitcoin tokens allow Bitcoin to be used on other blockchains, such as Ethereum, by locking up Bitcoin and issuing a new token that represents its value. cirBTC was designed with strong institutional safeguards, including segregated reserves and a federally supervised custodian, but it has yet to gain significant traction.
Low adoption despite strong infrastructure
As of August 27, cirBTC had 40.02 tokens outstanding, backed by 42.51 Bitcoin, giving it a small reserve cushion. In comparison, WBTC had about 116,499 tokens, and Coinbase’s cbBTC had roughly 98,668 tokens. This means WBTC and cbBTC each have over 2,400 times more Bitcoin locked in than cirBTC.
Circle’s CEO, Jeremy Allaire, has described the company as building “the platform for the internet financial system,” but cirBTC’s low circulation raises questions about whether its infrastructure can attract enough users to compete with established tokens.
Next steps for cirBTC
A proposal to add cirBTC to the Aave lending platform is under discussion, which could help increase its visibility and utility. Additionally, the upcoming launch of Circle’s Arc network may provide another test for cirBTC’s distribution and adoption.
Currently, cirBTC shows no tracked trading volume or liquidity on major public data platforms like CoinGecko, suggesting it has not yet developed a visible market presence.
