Circle launches Bitcoin-backed USDC loans, stock rises
6.7 Investments Circle now lets institutions borrow USDC against Bitcoin using cirBTC as collateral on Arc and Ethereum, streamlining borrowing and boosting liquidity. The launch coincided with a 6% rise in Circle’s stock price.
Circle has launched a Digital Asset-Backed Borrowing feature on its Mint platform, enabling institutions to borrow USDC by using their Bitcoin holdings as collateral, without selling their BTC. To participate, users deposit BTC, which is then wrapped into cirBTC—a tokenized asset backed 1:1 by BTC held in custody. This cirBTC serves as collateral in supported lending markets, such as Morpho, available on both Ethereum and Circle’s Arc blockchain. Borrowed USDC is credited directly to the borrower’s Circle Mint account. Once the loan is repaid, the collateral is released and the original BTC is returned. The service is overcollateralized, with specific rates and requirements set by the lending protocols. Circle plans to expand support to additional markets like Aave. This integration aims to streamline transactions, enhance liquidity, and attract more institutional users to Circle’s ecosystem. The launch coincided with a 6% rise in Circle’s stock price as Bitcoin surpassed $85,000.
