Circle Brings USDC Liquidity to Bitcoin with Digital Asset-Backed Borrowing
Circle has launched Digital Asset-Backed Borrowing (DABB) on Circle Mint, allowing qualified institutions to borrow USDC against their Bitcoin holdings without selling their BTC. The service uses cirBTC as collateral and is provided through integrated third-party lending markets on Arc and Ethereum.
Morpho is the first lending protocol to support this service, and it simplifies the process of borrowing USDC by eliminating the need for wrapped assets and separate settlement processes. With DABB, customers can deposit BTC, mint cirBTC, choose a supported lending market, provide cirBTC as collateral, and borrow USDC.
The borrowed stablecoin is credited to the customer's Circle Mint balance, and repaying the USDC releases the collateral. Positions are overcollateralized, and interest rates, collateral requirements, liquidation thresholds, available liquidity, and other terms are set by the selected lending market.