Circle Launches Bitcoin-Backed USDC Borrowing for Institutional Clients

Circle, a leading financial technology company, has launched Digital Asset-Backed Borrowing (DABB), a new service that allows eligible institutional Circle Mint customers to use Bitcoin as collateral to borrow USDC without selling their BTC. This innovative product was made available on September 21, 2026.

The service connects several infrastructure components, including Circle Mint's account system, cirBTC, and third-party onchain credit markets. Circle emphasized that it does not originate, underwrite, or fund the loans itself, as lending is provided entirely by independent third parties.

Morpho, a leading lending protocol, was the first to participate in the launch of DABB. The service currently operates on Arc and Ethereum networks, with plans to expand to additional lending markets and third-party platforms in the future. Eligible Circle Mint customers can open DABB positions, subject to jurisdiction and eligibility requirements.