Arc sees $90M in USDC borrowed against cirBTC in early DeFi activity

Arc: Arc is an open Layer-1 blockchain and economic platform positioned as an internet-native operating system for financial markets, payments, and tokenized assets. It features USDC as its native gas token, deep integration with Circle's asset suite, and support for DeFi lending and collateralized borrowing workflows via partners like Morpho. The news captures early-stage activity on Arc involving USDC borrowing backed by cirBTC, reflecting its design for stablecoin-centric and BTC-collateralized finance shortly after mainnet features launched. cirBTC: cirBTC is Circle's 1:1 Bitcoin-backed wrapped token issued on Arc and Ethereum, with reserves held in segregated custody at a regulated trust bank and verifiable onchain via Chainlink Proof of Reserve. It is designed for institutional users seeking neutral, transparent BTC collateral without exposure to competing trading or lending venues operated by the issuer. In the news, cirBTC serves as the collateral enabling substantial USDC borrowing on Arc, demonstrating its utility in onchain credit markets. USD Coin: USD Coin, commonly known as USDC, is Circle's regulated stablecoin pegged to the US dollar and redeemable 1:1 for USD. It serves as a core asset for payments, transfers, settlements, and onchain financial activity across multiple blockchains. In this news, USDC is the primary asset being borrowed against cirBTC collateral on the Arc platform, highlighting its role in early DeFi credit activity. Asset Launch: cirBTC was recently made available on Arc to enable Bitcoin holders to access liquidity through collateralized borrowing of USDC in third-party lending markets without selling underlying BTC. Platform Features: Arc operates as a stablecoin-native Layer-1 with USDC integrated at the protocol level for gas fees, settlements, and interoperability via Circle CCTP. Borrowing Mechanism: Eligible institutional users can deposit BTC to mint cirBTC and borrow USDC against it via approved protocols on Arc, supporting productive use of Bitcoin holdings in DeFi.