Circle Lets Institutions Borrow USDC Against Bitcoin Without Selling
Circle's Digital Asset-Backed Borrowing feature has launched on its Circle Mint platform, allowing institutional Bitcoin holders to borrow USDC against their BTC without selling their assets.
The feature, which went live on September 2, 2026, lets institutions deposit BTC into Circle Mint, where it gets wrapped into cirBTC, a tokenized version backed 1:1 by BTC held in custody at Circle National Trust.
The cirBTC then serves as collateral inside Morpho vaults, and the resulting USDC loan settles directly back into the borrower's Circle Mint account. Chainlink's proof-of-reserves verification underpins the cirBTC backing, giving lenders an on-chain confirmation that the collateral is real and accounted for.
On Arc's launch day, September 16, 2026, Morpho vaults backed by cirBTC drew over $150 million in USDC and EURC deposits. This new feature changes the calculus on holding BTC through market cycles, allowing large holders to borrow against their position to fund operations or deploy into other opportunities without triggering a taxable sale.