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      Circle Launches Bitcoin-Backed USDC Borrowing via Morpho

      Circle has introduced a new borrowing mechanism for its USDC stablecoin, allowing clients to mint USDC backed by Bitcoin. This initiative utilizes the cirBTC market on the Arc platform, which has seen a significant increase in activity, holding $14.3 million in USDC borrowed against 287 cirBTC as of September 21, 2026. This marks a notable rise from just $1.37 million reported on September 17, 2026.

      The lending framework is primarily supported by Galaxy and Keyrock, which provide the necessary liquidity in dollars. Circle is responsible for issuing the wrapped tokens and managing the wallet, while the loan terms are facilitated through Morpho, a decentralized finance (DeFi) protocol. This collaboration aims to enhance the accessibility and utility of USDC in the growing DeFi landscape.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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