Crypto
Circle Introduces Bitcoin-Backed USDC Borrowing for Institutions
Circle has launched a new service called Digital Asset-Backed Borrowing for its institutional customers. This allows them to deposit Bitcoin, mint cirBTC, and borrow USDC through third-party lending markets on Arc or Ethereum.
The service combines the steps needed to turn native BTC into on-chain collateral and return borrowed USDC to a customer's Circle Mint balance. Morpho is the first supported lending protocol, with Aave expected to join later.
CirBTC reserves currently exceed token supply, with Circle publishing backing data directly for public verification. Borrowing terms and liquidations depend on third-party markets entirely.