Circle has launched Digital Asset-Backed Borrowing for eligible Circle Mint customers. Customers can deposit BTC, mint Circle Wrapped Bitcoin (cirBTC), and use it in supported third-party lending markets to borrow USDC into their Circle Mint accounts without selling their BTC. Circle said each cirBTC token is backed one-to-one by native BTC.
The service is available on Arc and Ethereum, with Morpho the first supported lending protocol. Circle plans to add other markets and networks, including Aave support. Borrowing positions are overcollateralized; rates, liquidation levels, liquidity and collateral requirements depend on the chosen lending market and may change.
