Arc Sees $500M in Deposits in Just Over Two Weeks, Driven by Institutional Lending

Circle's Arc network, a Layer-1 blockchain designed for stablecoin payments, foreign exchange, and tokenized assets, has seen rapid growth since its launch on September 16, 2026. In just over two weeks, more than $500 million has flowed into Morpho, Arc's core credit layer, driven largely by institutional lending. This milestone marks a significant achievement for Circle's efforts to own more of the stack that its stablecoins run on.

The majority of this activity, approximately 86%, is concentrated in the cirBTC/USDC market, which allows lenders to post Bitcoin exposure as collateral and borrow dollars against it. This market has been running at near-full utilization, with nearly all USDC lenders already supplying capital that has been borrowed.

The top vaults on Arc, managed by firms like Steakhouse Financial and Bitwise, are yielding around 0.80% net APY, reflecting a user base that prioritizes structure and known counterparties over high yields. As activity continues to grow, observers will be watching for signs of whether deposits and loans expand beyond these initial numbers and whether the market diversifies into other assets.