Circle Mint enables institutions to borrow USDC against Bitcoin through Morpho

Arc: Arc is a Layer-1 blockchain developed by Circle specifically for stablecoin-native financial applications, with USDC as the gas token. It launched publicly in September 2026 and integrates Morpho as its core credit infrastructure from day one. The news positions Arc as one of the primary networks where Circle Mint users can execute BTC-backed borrowing. Morpho: Morpho is an onchain credit network providing permissionless lending markets and vaults for variable-rate borrowing and earning. It powers the Digital Asset-Backed Borrowing feature in Circle Mint by facilitating USDC loans against cirBTC collateral. Morpho is the initial approved protocol for this integration on Arc and Ethereum. Bitcoin: Bitcoin is the original cryptocurrency that serves as a primary store of value and collateral asset in digital finance. The news highlights its use as backing for cirBTC on Circle Mint, enabling institutions to borrow against holdings without selling. This expands Bitcoin's role in onchain credit markets. Ethereum: Ethereum is the leading smart contract blockchain supporting a wide range of DeFi protocols and lending markets. Circle Mint's new borrowing feature extends to Ethereum, allowing institutions to access established Morpho markets alongside the newer Arc network. Circle Mint: Circle Mint is Circle's institutional platform for minting, redeeming, and managing USDC and related assets. In this news, it now integrates borrowing functionality that allows eligible customers to deposit Bitcoin, mint cirBTC, and access USDC liquidity through third-party protocols. The feature supports both Arc and Ethereum deployments. Product Launch: Circle Mint has introduced Digital Asset-Backed Borrowing, enabling eligible institutions to mint cirBTC from deposited Bitcoin and borrow USDC against it via Morpho. Institutional Focus: The feature targets eligible institutional customers through Circle Mint, allowing liquidity access while retaining Bitcoin exposure without asset sales. Network Integration: The borrowing service is available on both the newly launched Arc blockchain and the established Ethereum network, with Morpho as the initial lending protocol.