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      Circle's Arc Facilitates $150 Million in USDC Borrowing Against Bitcoin Collateral

      Arc, Circle's EVM-compatible Layer-1 blockchain, has facilitated over $150 million in USDC borrowing against cirBTC, a token backed by Bitcoin, within days of its launch. The borrowing surged from approximately $1.37 million to over $90 million shortly after the mainnet went live on September 21, 2026.

      The borrowing mechanism allows institutions to deposit Bitcoin, mint cirBTC, and then borrow USDC against that collateral without selling their Bitcoin holdings. Each cirBTC token is backed 1:1 by Bitcoin held in segregated custody, with Chainlink’s Proof of Reserves ensuring the collateral's integrity. This framework, branded as Digital Asset-Backed Borrowing (DABB), is currently available only to eligible Circle Mint clients.

      Early market data indicates a loan-to-value ratio of 86%, suggesting that borrowers are operating within tight risk parameters. The rapid growth in borrowing activity points to pre-positioned institutional capital ready to engage with the new protocol. Liquidity providers such as Galaxy Digital and Keyrock, along with Aave's specialized markets, have contributed to creating a competitive lending environment on Arc.

      © 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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