Crypto
Circle Introduces Bitcoin-Backed USDC Borrowing for Institutional Clients
Circle has launched a new borrowing service for institutional clients, allowing them to use Bitcoin as collateral to borrow USDC through on-chain lending markets.
The service, called Digital Asset-Backed Borrowing, lets customers deposit Bitcoin and mint Circle's wrapped Bitcoin token cirBTC, which is supplied as collateral to supported third-party lending markets on Arc or Ethereum.
Morpho is the first lending protocol supported by this new service, with Circle planning to add Aave and other protocols in the future.
The borrowed USDC is deposited directly into the customer's Circle Mint balance, while borrowing rates, collateral requirements, and liquidation thresholds are set by the third-party lending market.