Circle's Arc blockchain, an EVM-compatible Layer 1 network, has seen institutional borrowing reach over $90 million in USDC against cirBTC deposits within three days of the token's launch. The volume grew from an initial $1.37 million on September 21 to $14.3 million shortly thereafter.
The cirBTC token is backed 1:1 by Bitcoin held at Circle National Trust, with reserves verified via Chainlink Proof of Reserve. The borrowing mechanism, termed Digital Asset-Backed Borrowing, allows Circle Mint clients to supply cirBTC to Morpho Blue lending markets to secure USDC loans.
Liquidity providers Galaxy and Keyrock have been active in the cirBTC/USDC pools. Deposits of USDC and EURC exceeded $150 million on the launch day of the mainnet, which occurred in mid-September 2026. Loan-to-value ratios are determined by the lending protocol, with one instance observed at 86 percent.
While the borrowing volume reached $90 million, reports note a discrepancy between supplied capital and active loans. Analysts are monitoring the data to ensure the figures align with on-chain activity, as a portion of the deposited liquidity remains unmatched with borrowers.
