Crypto news report · source clearly identified
Circle Enables Bitcoin-Backed USDC Loans via Morpho on Arc
The cirBTC market on Arc now holds $14.3 million of USDC borrowed against 287 cirBTC, a sharp rise from $1.37 million on Sept. 17. Circle provides the token wrapper and wallet, while Galaxy and Keyrock supply most of the USDC and Morpho sets the loan terms.
Circle has launched a Bitcoin‑backed borrowing facility that allows users to mint USDC against tokenized Bitcoin (cirBTC) on the Arc platform. The new market, cirBTC, now contains $14.3 million of USDC loans secured by 287 cirBTC, up from $1.37 million on Sept. 17.
Key Participants
Circle issues the cirBTC wrapper and the associated wallet, while the loan terms are managed by Morpho. The majority of the USDC liquidity is supplied by Galaxy and Keyrock, which together provide nearly all of the borrowed dollars.
Market Growth
The rapid increase in borrowed USDC reflects growing demand for Bitcoin‑collateralized stablecoin financing. The market now supports 287 cirBTC tokens, representing a significant expansion of Circle’s tokenized Bitcoin offering.
Operational Structure
- Wrapper & Wallet: Circle creates the cirBTC token and the wallet used for collateral.
- Loan Terms: Morpho defines and enforces the borrowing conditions.
- Liquidity Providers: Galaxy and Keyrock supply the USDC used in the loans.
Implications
This development adds a new layer of DeFi‑compatible borrowing to the Bitcoin ecosystem, allowing users to unlock liquidity without selling their Bitcoin holdings.
Source & attribution
News Source
- Publisher
- The Defiant
- Original date
- September 21, 2026, 8:30 PM
- Original headline
- Circle Opens Bitcoin-Backed USDC Borrowing To Mint Clients, Routed Through Morpho