#circlelaunchesinstitutionalbtcbackedborrowing 🚨 Bitcoin can now work with more power. Without being sold!
Circle has launched asset-backed borrowing (DABB) for Institutional Circle Mint clients.
The idea is simple: institutions can keep their exposure to Bitcoin (BTC) while getting USDC liquidity in return.
🔹 Deposit BTC → create cirBTC
🔹 Use cirBTC as collateral in supported DeFi markets
🔹 Borrow USDC
🔹 Receive USDC directly in Circle Mint
🔹 Repayment → collateral is released
The launch is available on Ethereum and Arbitrum with Morpho as the approved lending protocol. Circle says more protocols, including Aave, are expected to join.
🔥 Why traders should pay attention:
This provides another way to use Bitcoin as collateral to obtain USDC liquidity, which could make Bitcoin more useful in credit markets without institutions needing to sell BTC.
However, using leverage comes with risks: borrowing rates, collateral requirements, and liquidation limits depend on the DeFi market. They can change.
👀 Could Bitcoin-backed borrowing become a way to connect institutional Bitcoin with DeFi liquidity?
Please follow up
#Bitcoin #BTC #Crypto #DeFi #USDC:
$BTC
Circle has launched asset-backed borrowing (DABB) for Institutional Circle Mint clients.
The idea is simple: institutions can keep their exposure to Bitcoin (BTC) while getting USDC liquidity in return.
🔹 Deposit BTC → create cirBTC
🔹 Use cirBTC as collateral in supported DeFi markets
🔹 Borrow USDC
🔹 Receive USDC directly in Circle Mint
🔹 Repayment → collateral is released
The launch is available on Ethereum and Arbitrum with Morpho as the approved lending protocol. Circle says more protocols, including Aave, are expected to join.
🔥 Why traders should pay attention:
This provides another way to use Bitcoin as collateral to obtain USDC liquidity, which could make Bitcoin more useful in credit markets without institutions needing to sell BTC.
However, using leverage comes with risks: borrowing rates, collateral requirements, and liquidation limits depend on the DeFi market. They can change.
👀 Could Bitcoin-backed borrowing become a way to connect institutional Bitcoin with DeFi liquidity?
Please follow up
#Bitcoin #BTC #Crypto #DeFi #USDC:
$BTC
