Circle’s Bitcoin-Backed Lending Market Faces Liquidity Squeeze
Institutional borrowing against Bitcoin via Circle’s cirBTC token has pushed utilization in the main Morpho market to 97.4%, leaving only $5 million in available liquidity.

Institutional borrowing against Bitcoin via Circle’s cirBTC token has pushed utilization in the main Morpho market to 97.4%, leaving only $5 million in available liquidity.

Ledger has launched a self-custodial crypto loan feature, allowing users to borrow stablecoins against wrapped Bitcoin without selling their holdings.

Crypto market maker Wintermute has launched its Armitage vault curation service on Morpho, attracting over $145 million in deposits since its May 2026 debut.

Morpho has secured over $500 million in deposits on Circle’s Arc network within two weeks of the mainnet launch, driven primarily by institutional interest in Bitcoin-backed lending.

Sentora's Morpho vaults experienced significant outflows following a security incident at MetaMask, despite no evidence of direct technical exposure.

Morpho has introduced its Midnight protocol on Base, enabling offer-based fixed-rate lending with support from Coinbase and Robinhood.

Morpho has blamed a third-party AI marketing tool for an unauthorized post that incorrectly described the protocol's curator business model as relying on private deals.

Morpho's curator-led DeFi model relies on offchain revenue and subsidies to maintain financial viability, despite the protocol reaching $3 billion in total deposits.

Morpho CEO Paul Frambot’s proposal to classify onchain vaults has drawn criticism from industry leaders over concerns regarding regulatory neutrality and product positioning.

Morpho Midnight has integrated all USDC markets from Morpho Blue, enabling multi-market limit orders for fixed-rate lending with various collateral types.

Circle has launched a new borrowing feature for institutions, enabling them to secure USDC loans against Bitcoin collateral via the Morpho lending protocol.

Circle’s Arc blockchain has integrated Morpho as its core lending engine, recording over $150 million in deposits on its first day.

Morpho has launched stock-backed loans on the Base network, allowing users to borrow against tokenized Coinbase-issued shares of major tech companies.

Aerie Capital has launched a Morpho-based lending market on Ethereum, allowing users to borrow stablecoins against Plume vault tokens without bridging.

Morpho is delegating the management of its 2.2 million-user Mini App to Featherlend as part of a strategy to offload front-end operations.

Bitwise Asset Management’s new RWA vault, PAPY, reached $13.267 million in total value locked within its first week of operation on the Ethereum network.
