Circle Introduces Bitcoin-Backed USDC Loans for Institutions
- Eligible institutional clients can borrow USDC using bitcoin as collateral without selling it.
- The Digital Asset-Backed Borrowing (DABB) service supports Morpho lending markets on Arc and Ethereum.
- Each cirBTC token is backed 1:1 by native bitcoin, with reserves verifiable onchain.
- Circle National Trust holds the underlying bitcoin as a federally licensed trust bank and qualified custodian.
- Borrowed USDC is credited directly to the client’s Circle Mint balance, with terms varying by market.
Circle’s DABB allows institutions to leverage their bitcoin assets for liquidity without liquidating them, enhancing financial flexibility in the crypto space. The service aims to integrate smoothly with existing lending markets while ensuring overcollateralization based on specific parameters.
With each cirBTC token backed by bitcoin, this initiative provides a new avenue for accessing dollar liquidity through stablecoins. The launch of DABB marks a significant step in bridging traditional finance and cryptocurrency markets.
