Institutional Bitcoin-backed borrowing via Circle Mint

Circle launched a Digital Asset-Backed Borrowing feature on Circle Mint that lets eligible institutional clients borrow USDC against wrapped BTC (cirBTC) without selling their Bitcoin. Institutions deposit BTC, which Circle wraps into cirBTC held 1:1 by Circle National Trust; Chainlink proof-of-reserves underpins the backing. The cirBTC is posted as collateral in Morpho vaults across Ethereum and Circle’s Arc chain, and USDC loans settle directly into borrowers’ Circle Mint accounts. Loan terms, interest rates and collateral ratios are set by Morpho’s market parameters.

The feature went live on September 2, 2026, and Circle launched cirBTC borrowing on both chains. Early demand was notable: one report said Morpho vaults drew over $150 million in USDC and EURC deposits around Arc’s mainnet launch, while a later snapshot showed the cirBTC market on Arc holding $14.3 million of USDC borrowed against 287 cirBTC, up from $1.37 million on Sept. 17, with Galaxy and Keyrock supplying nearly all the dollars. Circle issues the wrapper and wallet; the loan economics live with Morpho. Circle’s offering aligns with broader institutional trends—other custody-integrated borrow models from Anchorage–Kamino, Lombard–Bitwise and BitGo pursue similar goals of on-chain liquidity without moving collateral. The service excludes New York-based clients.