The Arc blockchain by Circle has launched with Morpho serving as its primary lending infrastructure. On the first day of operation, deposits in USDC and EURC vaults exceeded $150 million, with users utilizing cirBTC as collateral.
The cirBTC token is a wrapped asset backed 1:1 by Bitcoin held in segregated custody. Chainlink provides proof-of-reserves to verify the underlying Bitcoin holdings. The network uses USDC to cover gas fees, removing the need for a native token.
Morpho Blue manages variable-rate lending positions and offers APIs for fintech integration. The Arc validator set includes institutional participants such as BlackRock, DTCC, and Visa, which secure the network infrastructure.
As of mid-August, the supply of cirBTC on Ethereum was approximately 40 BTC. Developers are currently working on Morpho Midnight, a fixed-rate lending product intended to provide more predictable borrowing costs for institutional treasuries.
