Circle Launches Bitcoin-Backed USDC Borrowing Service for Institutions
Summary
- Circle has launched Digital Asset-Backed Borrowing, a Bitcoin-collateralized USDC borrowing service for institutional clients.
- Users can convert Bitcoin into cirBTC, post it as collateral and borrow USDC through third-party lending protocols.
- The first integrated protocol is Morpho, and Circle plans to expand support to Aave. The service is built on Circle's blockchain Arc and Ethereum.
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Circle has launched a service that allows institutional clients to borrow USDC using Bitcoin as collateral.
Crypto-focused media outlet Odaily reported on September 21 that Circle unveiled its Digital Asset-Backed Borrowing service. The product lets institutions borrow USDC against their Bitcoin holdings without selling the asset.
Users convert Bitcoin into cirBTC, a 1:1 tokenized version of Bitcoin, and post it as collateral. They can then borrow USDC through third-party lending protocols. cirBTC is custodied by Circle National Trust.
The first integrated protocol is crypto lending platform Morpho. Circle plans to expand support to other protocols, including Aave.
The service is currently built on Circle's blockchain Arc and the Ethereum network, and is available only to institutional clients.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.