Circle launches Bitcoin-backed USDC loans for institutional clients - TradingView
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Stablecoin issuer Circle has launched a Bitcoin-backed lending service for institutional clients. Eligible Circle Mint customers can use BTC as collateral to borrow USDC via on-chain lending markets. The service, called Digital Asset-Backed Borrowing, allows customers to deposit Bitcoin, mint Circle's wrapped Bitcoin token cirBTC, and transfer it as collateral to supported third-party lending markets on Arc or Ethereum. Morpho is the first supported lending protocol; Circle plans to add Aave and other protocols. The launch coincides with cirBTC going live on Arc on Monday. According to Circle, the borrowed USDC will be credited directly to the customer's Circle Mint balance, while interest rates, collateral requirements, and liquidation thresholds are set by the third-party lending market. The loan positions are overcollateralized; the collateral is transferred via a customer-controlled wallet to third-party DeFi protocols and not lent directly by Circle. Customers in New York are excluded. Circle had previously launched cirBTC on Ethereum in June. The token is 1:1 backed by Bitcoin, which is held in custody by Circle National Trust. Both launches occurred a few days after Circle launched the Arc mainnet, its Layer-1 blockchain for stablecoin payments and financial markets. Arc uses USDC as its native gas token and supports tokenized assets, including BlackRock's BUIDL and...
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