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Circle launches Bitcoin-backed USDC borrowing via Morpho

Sep 23, 2026 16:28 Written by Newisty Editorial Team bitcoin usdc circle morpho lending

Circle lets institutions borrow USDC against Bitcoin
Circle has launched a service that lets eligible institutions deposit Bitcoin and borrow USDC, a stablecoin, without selling their Bitcoin. The service went live on Sept. 21 on Arc and Ethereum, according to CryptoSlate.
Eligible Circle Mint clients can deposit native Bitcoin, mint a token called cirBTC, and use it as collateral in a lending market run by Morpho. Borrowed USDC then settles into the customer's Circle Mint balance.

Key details of the new service

Circle Mint is the account interface, cirBTC is a tokenized claim backed by native Bitcoin, and Morpho provides the third-party lending market.
The service is limited to eligible institutions, excludes New York clients, and is subject to jurisdiction and eligibility.
Morpho sets borrowing costs, collateral limits, liquidation thresholds, available liquidity, and availability. Each Morpho market is its own combination of loan asset, collateral, oracle, interest-rate model, and liquidation loan-to-value limit.
Circle's reserve dashboard reported 948.75081803 cirBTC outstanding against 951.25857454 BTC in reserves as of Sept. 20.

What the launch means

The launch shortens the path from held Bitcoin to USDC, but it does not turn variable DeFi credit into a fixed Circle loan. A treasury team still needs to monitor collateral values, utilization, and borrowing costs, because a position can become liquidatable even though the Bitcoin was never sold.

A Sept. 21 snapshot of the Arc market for USDC loans against cirBTC showed an 86% liquidation loan-to-value limit, $14.13 million borrowed, $162.85 million in available liquidity, a $176.99 million market size, and 7.98% utilization. These figures are a point-in-time snapshot and do not apply to Ethereum.

Whether the service drives lasting cirBTC demand will depend on continued borrowing activity and market terms after the launch-day snapshot.

Sources

CryptoSlate

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Newisty Editorial Team

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Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.