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      Circle's Arc Blockchain Sees $90 Million in USDC Borrowed in Initial Days

      Circle's newly launched Arc blockchain has quickly attracted significant institutional interest, with over $90 million in USDC borrowed against cirBTC, its Bitcoin-backed token, just three days after its launch. The mainnet went live in mid-September 2026, and cirBTC was introduced on September 21, marking the blockchain's first major financial product. Initial borrowing volumes started at approximately $1.37 million and surged to $14.3 million within days, indicating strong demand from institutional borrowers.

      Arc is designed as an EVM-compatible Layer 1 blockchain focused on stablecoin-native finance. The cirBTC token is backed 1:1 by Bitcoin held at Circle National Trust, with reserves verifiable on-chain through Chainlink Proof of Reserve. The borrowing mechanism, termed Digital Asset-Backed Borrowing (DABB), allows eligible clients to deposit Bitcoin, mint cirBTC, and then borrow USDC, with loan-to-value ratios determined by the lending protocol rather than Circle itself. Notably, clients based in New York are excluded from participating in this borrowing process.

      Liquidity for the lending markets has been primarily provided by firms such as Galaxy and Keyrock, which have contributed to the rapid scaling of borrowing capacity. On the launch day, deposits of USDC and EURC reportedly exceeded $150 million, suggesting that the supply side was well-prepared for borrower demand. The ability for institutions to borrow against their Bitcoin holdings without triggering taxable events has made this option particularly appealing, as it allows them to maintain exposure to Bitcoin's potential upside while accessing working capital.

      © 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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