cirBTC Stumbles Out of the Gate with Meager 40 BTC in Circulation
Circle's wrapped Bitcoin product, cirBTC, has only 40 BTC in circulation about 11 weeks after its Ethereum launch on August 27. This is despite Circle's strong institutional credentials and segregated reserves. The company's reserve panel shows that the 40 BTC represent a token float with underlying $42.51 million in reserve, which is equivalent to about 106.2% coverage.
Circle CEO Jeremy Allaire said the company built 'the platform for the internet financial system,' but cirBTC has yet to show whether it can produce the liquidity and integrations that make wrapped Bitcoin useful as collateral. The adoption gap is stark when compared to WBTC, which has a supply of 116,499 BTC, and cbBTC, which has a supply of 98,668 BTC.
Circle's trust charter, $USDC, and planned Arc network are part of its integrated stack that combines trust with platform control. The company received final approval from the Office of the Comptroller of the Currency in July for Circle National Trust, which holds the underlying Bitcoin as custodian.