Circle’s cirBTC Takes Aim at Coinbase’s $6 Billion cbBTC Months Before Key Deal Renewal
Circle launched cirBTC, a wrapped Bitcoin token, challenging Coinbase’s cbBTC ahead of a crucial revenue-sharing agreement renewal in August.Summary
Circle announced cirBTC, a wrapped Bitcoin (BTC) token backed 1:1 by native BTC with real-time onchain reserve verification, marking its expansion beyond stablecoins. This move directly competes with Coinbase’s cbBTC, which currently holds a $6 billion market share. Circle positions cirBTC as a more transparent and trustworthy alternative to existing wrapped BTC products, addressing concerns about credibility issues that have plagued the sector, such as those surrounding BitGo’s WBTC. The launch is strategically timed, coinciding with the upcoming renewal of a revenue-sharing agreement between Circle and Coinbase in August 2026, where analysts estimate Coinbase currently earns over $900 million annually. The competitive dynamic suggests Circle may be seeking increased leverage in these negotiations. While Circle CEO Jeremy Allaire frames cirBTC as infrastructure, not rivalry, the launch could significantly impact the balance of power between the two companies.
(Source：BeInCrypto)