Circle’s Arc blockchain has reached a milestone of $150 million in USDC loans issued against cirBTC collateral. The platform, which launched its mainnet on September 21, 2026, saw borrowing volume surge from $1.37 million at inception to over $90 million in just a few days.
The infrastructure relies on Morpho Blue and Aave to facilitate lending. Institutions deposit Bitcoin to mint cirBTC, a token backed 1:1 by BTC held in segregated custody. Chainlink’s Proof of Reserves provides continuous verification of the collateral, while access is restricted to Circle Mint clients.
Galaxy Digital and Keyrock serve as the initial liquidity providers for the platform. The system operates with an 86% liquidation loan-to-value ratio, reflecting the risk parameters set for institutional participants. Deposits into Morpho vaults exceeded $150 million within hours of the mainnet launch.
This framework, branded as Digital Asset-Backed Borrowing, allows institutions to obtain liquidity without selling their Bitcoin holdings. By avoiding asset sales, users prevent taxable events and maintain exposure to potential Bitcoin price appreciation.
