Crypto
Circle Unveils Institutional Bitcoin-Backed USDC Loan Service
Circle has introduced an institutional Bitcoin-backed USDC loan service through its Circle Mint platform.
The tool, called Digital Asset-Backed Borrowing (DABB), enables institutions to access immediate liquidity in digital dollars without selling their BTC reserves on the spot market.
Clients deposit BTC to mint cirBTC, which is backed 1:1 by Circle National Trust. They can then use this collateral to borrow USDC through supported third-party lending markets on Arc and Ethereum networks.
The resulting USDC balance is credited directly into the user's corporate account on Circle Mint. The interest rate parameters, margin requirements, and liquidation thresholds depend exclusively on the smart contracts of the chosen decentralized protocol.