Circle Launches BTC-Backed Borrowing Service for Institutional Clients

iconCoinEdition
Share
This is the logo of the coin.
USDC
$1.000%
This is the logo of the coin.
BTC
$86,036.600.79%
This is the logo of the coin.
ETH
$2,749.410.76%
This is the logo of the coin.
AAVE
$143.02-2.83%
AI summary iconSummary
Circle has rolled out a BTC update, enabling institutional adoption through a new borrowing service for eligible institutional clients. Users can deposit Bitcoin and convert it into cirBTC, which can be used as collateral on platforms like Morpho on Arc and Ethereum. Borrowed USDC is sent directly to Circle Mint balances. Support for Aave and other protocols is planned. New York-based clients are not included in the initial rollout.

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 collateral through wallets connected to those protocols. However, Circle excludes clients based in New York from the initial service.

Circle launched cirBTC on Ethereum in June before expanding the token to Arc. Circle National Trust holds the underlying Bitcoin and backs each cirBTC token one-to-one.

Institutional Crypto Lending Expands

The launch highlights growing demand for crypto-backed financing among institutional investors. Anchorage Digital previously enabled borrowing against staked Solana through Kamino. Moreover, Lombard and Bitwise developed Bitcoin lending infrastructure using Morpho.

Related:Strive Boosts Bitcoin Holdings to 26,355 BTC With $107.7 Million Purchase

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.