Circle Launches Bitcoin-Backed USDC Borrowing Service for Institutional Circle Mint Clients
Circle rolled out Digital Asset-Backed Borrowing, letting institutional clients mint cirBTC from Bitcoin and borrow USDC via Morpho on Arc and Ethereum without selling their BTC.
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Why it matters
The service gives institutions a way to raise dollar liquidity against Bitcoin holdings without selling, extending Circle's push into onchain lending following its Arc mainnet launch, though liquidation and market terms rest with third-party protocols like Morpho rather than Circle itself.
Where the sources disagree
Dollar amount borrowed on Arc's cirBTC Morpho market
$14.13 million borrowed, $162.85 million available liquidity (Sept. 21 snapshot)
Crypto.News, Bitcoin Insider
$18.86 million borrowed, $157.85 million available liquidity (Sept. 22 snapshot)
Crypto.News, Bitcoin Insider
CryptoSlate's Sept. 21 snapshot showed $14.13 million borrowed with $162.85 million available liquidity, while Crypto.News's Sept. 22 snapshot showed $18.86 million borrowed with $157.85 million available liquidity; Bitcoin Insider noted the discrepancy without resolving it.
Key facts
Circle launched Digital Asset-Backed Borrowing for eligible institutional Circle Mint customers.
Reported by Cointelegraph
Customers deposit Bitcoin to mint cirBTC and supply it as collateral to borrow USDC through third-party lending markets.
Reported by Cointelegraph
Morpho is the first lending protocol supported, with Aave expected to be added later.
Reported by Cointelegraph
The service is available on Arc and Ethereum, and excludes clients based in New York.
Reported by Cointelegraph
The Arc cirBTC Morpho market carries an 86% liquidation loan-to-value threshold.
86 %Reported by Crypto.News
Reports differ on the amount borrowed on Arc's cirBTC Morpho market, with figures of $14.13 million and $18.86 million cited from snapshots a day apart.
Disputed figureReported by Crypto.News
TD Cowen raised Circle's price target to $92, citing Arc growth and reserve economics prospects.
92 USDReported by CoinGape
What happened
Circle launched Digital Asset-Backed Borrowing (DABB), a service letting eligible Circle Mint institutional clients deposit Bitcoin, mint Circle's wrapped token cirBTC, and supply it as collateral on third-party lending markets to borrow USDC without selling their BTC, according to Cointelegraph, CoinGape, Bitcoin.com News, Crypto News, CryptoSlate and Crypto.News. Morpho is the first supported lending protocol on Arc and Ethereum, with Circle saying Aave and other platforms will follow; borrowed USDC settles directly into the customer's Circle Mint balance, and positions are overcollateralized with terms set by the third-party market rather than Circle. New York clients are excluded, and cirBTC is described as backed 1:1 by Bitcoin held by Circle National Trust. Sources disagree on the dollar amount borrowed on Arc's cirBTC Morpho market: CryptoSlate reported $14.13 million borrowed against $162.85 million available liquidity in a Sept. 21 snapshot, while Crypto.News reported $18.86 million borrowed against $157.85 million available liquidity on Sept. 22; Bitcoin Insider flagged this discrepancy explicitly. All sources agree on an 86% liquidation loan-to-value threshold for the Arc market.
How the story developed
- First report
First report by Cointelegraph
Circle launches Bitcoin-backed USDC borrowing for institutional clients
- Update
Circle announces Digital Asset-Backed Borrowing launch
Circle launched the Bitcoin-backed USDC borrowing service for institutional Circle Mint clients on Arc and Ethereum, with Morpho as the first lending market.
- Independent corroboration
Independently corroborated by CoinGape
USDC Issuer Circle Rolls Out Bitcoin-Backed Loans for Institutions
- Update
Additional outlets confirm launch details
CoinGape and Bitcoin.com News corroborated the service mechanics, eligibility restrictions and Morpho integration.
- Official statement
Official statement from Bitcoin.com News
Circle Now Lets Institutional Clients Borrow USDC Against Their Bitcoin
- Update
CryptoSlate and Crypto.News publish differing Arc market borrowing figures
The two outlets reported different snapshots of the amount borrowed on the Arc cirBTC Morpho market, taken roughly a day apart.
- Update
Bitcoin Insider flags the discrepancy between borrowing figures
Bitcoin Insider explicitly compared CryptoSlate's and Crypto.News's differing dollar figures for the Arc market.
How coverage built up
Independent sources over time, counted the way the consensus panel counts them: a republication of a wire story does not move the line.
- 21 Sept 2026, 16:56 UTC: Cointelegraph — 1 independent source, 1 reports
- 21 Sept 2026, 19:28 UTC: CoinGape — 2 independent sources, 2 reports
- 21 Sept 2026, 22:10 UTC: Bitcoin.com News, official — 3 independent sources, 3 reports
- 22 Sept 2026, 02:51 UTC: Crypto News (CryptoNews.net) — 4 independent sources, 4 reports
- 22 Sept 2026, 03:40 UTC: CryptoSlate — 5 independent sources, 5 reports
- 22 Sept 2026, 05:31 UTC: Crypto.News — 6 independent sources, 6 reports
Affected entities
Also mentioned: Solana, U.S. Securities and Exchange Commission, BlackRock, Federal Reserve, United States, U.S. Congress, Bitwise
Original sources
| Publisher | Report | Role | Published |
|---|---|---|---|
| Bitcoin.com News Company, official | Circle Now Lets Institutional Clients Borrow USDC Against Their Bitcoin | Independent | |
| Cointelegraph Crypto media | Circle launches Bitcoin-backed USDC borrowing for institutional clients | Original | |
| CryptoSlate Crypto media | Circle launches Bitcoin-backed USDC borrowing, leaving liquidation risk with Morpho protocol | Independent | |
| Crypto.News Crypto media | Circle launches Bitcoin-backed USDC borrowing | Independent | |
| CoinGape Crypto media | USDC Issuer Circle Rolls Out Bitcoin-Backed Loans for Institutions | Independent | |
| Crypto News (CryptoNews.net) Aggregator | Circle Launches Bitcoin-Backed USDC Loans for Institutions Through Circle Mint | Syndicated | |
| Bitcoin Insider Aggregator | Circle BTC Loans: Reports Differ on Arc Borrowing Total | Syndicated |
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