CryptoSlate
Eligible Circle Mint institutions can now deposit native Bitcoin, receive wrapped cirBTC collateral and borrow USDC through a Morpho lending market. Circle made the coordinated workflow live on Arc and Ethereum on Sept. 21, allowing treasury teams to raise dollar liquidity without selling BTC. The service excludes New York clients and remains subject to jurisdiction and eligibility requirements.
Why it matters
Circle Mint provides the account interface, while cirBTC represents a tokenized claim backed by native Bitcoin. Customers deposit BTC, mint cirBTC and supply it as collateral from a customer-controlled wallet. Borrowed USDC then settles into the Circle Mint balance, shortening the path from held Bitcoin to dollar liquidity.
The workflow does not turn DeFi credit into a fixed Circle loan. Morpho markets set their own loan asset, collateral, oracle, interest-rate model and liquidation loan-to-value limit. Circle coordinates the experience, but the selected market determines borrowing costs, collateral limits, available liquidity and liquidation risk.
Market impact
A Sept. 21 snapshot of the Arc market showed an 86% liquidation loan-to-value limit, $14.13 million borrowed, $162.85 million in available liquidity, a $176.99 million market size and 7.98% utilization. Those figures describe Arc at that point in time and do not apply to Ethereum.
Circle's reserve dashboard reported 948.75081803 cirBTC outstanding against 951.25857454 BTC in reserves as of Sept. 20, with about 397 cirBTC on Arc and about 552 on Ethereum. A position can become liquidatable even when the underlying Bitcoin is not sold, because cirBTC sits inside the lending market. Continued borrowing and market terms will determine whether the launch creates lasting demand for cirBTC.
Frequently asked questions
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How does Circle’s Bitcoin-backed borrowing workflow work?
Eligible institutions deposit native BTC through Circle Mint, receive cirBTC, supply it as collateral in a Morpho market and receive borrowed USDC in their Circle Mint balance.
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Who can use Circle’s Bitcoin-backed USDC service?
The service is available to eligible Circle Mint institutions, subject to jurisdiction and eligibility requirements. New York clients are excluded.
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Who sets the borrowing and liquidation terms?
The selected Morpho market sets borrowing costs, collateral limits, available liquidity and liquidation thresholds through its own oracle, interest-rate model and loan-to-value limit.
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What did the Sept. 21 Arc market snapshot show?
The snapshot showed an 86% liquidation loan-to-value limit, $14.13 million borrowed, $162.85 million in available liquidity, a $176.99 million market size and 7.98% utilization.
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Can a cirBTC-backed position be liquidated if Bitcoin is not sold?
Yes. A position can become liquidatable because cirBTC is used inside the lending market, even while the underlying Bitcoin remains unsold.
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