Circle launches Bitcoin-backed USDC borrowing, leaving liquidation risk with Morpho protocol
Eligible Circle Mint institutions can now deposit Bitcoin, turn it into wrapped cirBTC collateral, and borrow USDC through a Morpho lending market in one coordinated workflow. Related Asset Bitcoin #1 BTC · $85,538.91 24-hour change: up 4.98% Loading price history… 24H Up 4.98% 7D Up 9.90% 30D Up 11.17% Circle made the service live on Arc and Ethereum on Sept. 21, reducing the number of systems a treasury team must navigate to raise dollar liquidity without selling its Bitcoin. The service remains limited to eligible institutions, excludes New York clients, and is subject to jurisdiction and eligibility. Circle Mint is the account interface, cirBTC is Circles tokenized claim backed by native Bitcoin, and Morpho supplies the third-party lending market. Under Circles Digital Asset-Backed Borrowing service, customers deposit native BTC, mint cirBTC, and supply the token as collateral through a customer-controlled wallet. Borrowed USDC then settles into the customers Circle Mint balance. Related Company Circle Global crypto finance company Circle coordinates the experience, but the selected market determines borrowing costs, collateral limits, liquidation thresholds, available liquidity, and availability. Morphos documentation describes each market as its own combination of loan asset, collateral, oracle, interest-rate model, and liquidation loan-to-value limit. Related Asset USDC USDC · Stablecoin For a treasury team, the









