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- Circle launched Bitcoin-backed USDC borrowing for eligible institutional customers through Circle Mint using BTC collateral without sales.
- Morpho provides the first supported lending markets while customers use a self-controlled smart wallet for positions.
- Every cirBTC is backed 1:1 by native BTC held by Circle National Trust and safeguarded under OCC supervision.
Circle has launched Bitcoin-backed USDC borrowing for eligible institutional customers through Circle Mint, allowing them to use BTC as collateral without selling their holdings.
Digital Asset-Backed Borrowing is live on Arc and Ethereum. Customers can deposit Bitcoin, mint Circle Wrapped Bitcoin, or cirBTC, supply it to supported third-party lending markets through a wallet they control and receive borrowed USDC directly in their Circle Mint balance.
Morpho Handles Loans While Circle Connects the Borrowing Workflow
Circle is not the lender. Customer collateral and borrowing positions sit in third-party DeFi protocols, with Morpho providing the first supported markets.
Customers use a self-controlled smart wallet to supply cirBTC and borrow USDC. Once the borrowing transaction is completed, the USDC can move directly into the customer’s Circle Mint balance. Repayment through the same workflow releases the cirBTC collateral.
Borrowing rates, collateral requirements, liquidation thresholds, liquidity, and market availability are determined by the selected lending market rather than Circle. The positions are overcollateralized and do not rely on conventional unsecured credit underwriting. Circle plans to support additional lending protocols, including Aave, as the service expands.
cirBTC Uses 1:1 BTC Backing and OCC-Supervised Custody
The service relies on cirBTC because native Bitcoin cannot interact directly with smart contracts on Arc or Ethereum.
Every cirBTC is backed 1:1 by native BTC. The underlying Bitcoin is held through Circle International Bermuda Limited and safeguarded on its behalf by Circle National Trust, a federally chartered national trust bank and qualified custodian supervised by the Office of the Comptroller of the Currency.
Circle also uses Chainlink Proof of Reserve to publish reserve information on-chain, while disclosed Bitcoin addresses allow counterparties to compare native BTC reserves with outstanding cirBTC supply.
Eligible Institutions Can Borrow On Arc and Ethereum
Digital Asset-Backed Borrowing is available to eligible Circle Mint customers on Arc and Ethereum, excluding New York clients. Circle Mint itself is available only to institutions rather than individual retail users.
Arc and Ethereum each provide access to supported third-party lending markets, with Morpho available at launch.
The service connects BTC custody, tokenized collateral and third-party on-chain borrowing with settlement back into Circle Mint. Borrowers remain exposed to the interest-rate, collateral and liquidation risks set by the underlying lending market.
