Circle Adds BTC-Backed Borrowing Through Onchain Lending Markets

Circle has introduced a new borrowing service that lets institutional clients access USDC liquidity without selling their Bitcoin holdings. The initiative expands Circle’s role beyond stablecoin issuance and into institutional crypto finance. 

Eligible Circle Mint customers can deposit Bitcoin and convert it into cirBTC. They can then use cirBTC as collateral across supported onchain lending markets.

Bitcoin Becomes Loan Collateral

Circle’s new Digital Asset-Backed Borrowing service currently supports Morpho on Arc and Ethereum. Circle plans to add Aave and other lending protocols as the service expands. Borrowed USDC moves directly into customers’ Circle Mint balances after they secure their loans.

Additionally, third-party lending markets determine interest rates, collateral requirements, and liquidation thresholds. Customers retain control of their collatera…

Read The Full Article Circle Adds BTC-Backed Borrowing Through Onchain Lending Markets On Coin Edition.