AAVE opens dollar-euro borrowing on Arc's Forex market

Arc: Arc is Circle’s blockchain network designed for stablecoin-native applications and tokenized assets. Aave V4 deployed on Arc in September 2026 with initial assets including USDC and EURC. The network supports the hub-and-spoke lending model that powers the new Forex borrowing feature. Aave: Aave is a decentralized lending protocol that enables users to supply and borrow crypto assets across multiple blockchains. Aave V4 on Arc recently activated a Forex market allowing USDC borrowing against EURC positions without requiring liquidation of holdings. The deployment uses shared liquidity between the Forex spoke and the Main market on Circle’s Arc network. $EURC: EURC is Circle’s euro-pegged stablecoin designed for euro-denominated onchain transactions. It is supplied on the Aave V4 Arc Main market but cannot be used as collateral there, while the Forex spoke enables borrowing USDC against it. The asset supports Circle’s push for multi-currency stablecoin functionality on Arc. $USDC: USDC is Circle’s dollar-pegged stablecoin used widely for payments, trading, and DeFi lending. On Aave V4 Arc it serves as the primary borrowable asset in the Forex market against EURC collateral. Recent integrations highlight its role in Circle’s Arc ecosystem for efficient cross-currency activity. Aave V4: Aave V4 introduces a hub-and-spoke architecture that pools liquidity centrally while supporting specialized markets with varying collateral rules. The Forex spoke on Arc specifically facilitates cross-stablecoin borrowing such as USDC against EURC. This builds on the V4 launch on Arc earlier in September 2026. Architecture: The hub-and-spoke model in Aave V4 allows liquidity from the Core Hub to support distinct borrowing use cases like forex pairs on Arc. Product Feature: Aave V4’s Forex spoke on Arc enables users to borrow dollars against euros without selling their EURC holdings. Network Integration: Circle’s Arc network hosts Aave V4 deployments focused on stablecoin liquidity sharing across Main and specialized Forex markets.