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      Morpho Surpasses $500 Million in Deposits on Circle’s Arc in Two Weeks

      Morpho, a lending protocol, has achieved over $500 million in deposits on Circle’s Arc platform within just over two weeks of its launch. The Arc network, which is Circle’s EVM-compatible Layer-1, went live on September 16, 2026, alongside Morpho, allowing for immediate capital movement between lenders and borrowers.

      On launch day, initial deposits ranged between $150 million and $220 million, primarily in Circle's stablecoins, USDC and EURC. As of October 2, 2026, total deposits on Morpho's Arc deployment reached $500.27 million, with outstanding loans amounting to $189.93 million. The majority of lending activity has been concentrated in the cirBTC/USDC market, which represents approximately 86% of the platform's transactions, allowing users to leverage Bitcoin as collateral for dollar loans.

      The influx of deposits has been largely driven by institutional investors rather than individual users. Notable firms such as Steakhouse Financial and Bitwise manage Morpho’s curated vaults, which focus on risk management and structured lending. The top vaults yield around 0.80% net annual percentage yield (APY), reflecting a preference for stability over high returns among users.

      Arc aims to enhance Circle's infrastructure for stablecoin payments and tokenized assets, with support from major institutions like BlackRock and Visa. As Morpho continues to grow, attention will be on whether deposits and loans expand beyond the current figures and diversify into other asset markets.

      © 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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