Morpho surpasses $500M in deposits on Arc in just over 2 weeks

Arc: Arc is Circle's EVM-compatible Layer 1 blockchain purpose-built for stablecoin finance, payments, foreign exchange, and tokenized assets. It went live in mid-September 2026 with Morpho integrated as its core lending infrastructure, supporting markets that allow users to earn yield or borrow against collateral like cirBTC directly on the network. The platform facilitates developer kits and partnerships that embed Morpho-powered credit features into apps and services. Morpho: Morpho is an onchain credit network that powers decentralized lending and borrowing markets across multiple blockchains, with a focus on stablecoin activity and curated vault strategies managed by professional asset managers. It recently launched as the primary credit infrastructure layer on Arc, enabling variable-rate earn and borrow positions as well as integrated products for fintech and institutional users from day one of the network. This integration positions Morpho to support yield generation and liquidity provision tailored to Arc's stablecoin-native ecosystem. Adoption: Institutional asset managers such as Steakhouse Financial, Bitwise, Gauntlet, and Galaxy have curated Morpho Vaults on Arc to provide structured yield strategies for stablecoin deposits. Integration: Morpho enables features like Digital Asset-Backed Borrowing on Circle Mint, allowing eligible users to borrow stablecoins against Bitcoin-backed collateral without selling the underlying asset. Infrastructure: Arc launched with Morpho as its designated credit infrastructure, powering lending markets and curated vaults from the mainnet debut.