# Circle Turns BTC Collateral into USDC Borrowed Into Institutional Accounts
Circle has enabled digital-asset collateralized borrowing for Circle Mint institutional customers. Customers deposit BTC into Circle custody, mint cirBTC supported 1:1 by BTC, and then borrow USDC through lending markets such as Arc or Morpho on Ethereum. The borrowed USDC goes directly into the Circle Mint balance, so institutions do not need to sell BTC first.
This is not Circle lending directly: interest rates, collateral requirements, and liquidation thresholds are determined by third-party markets. The collateral is routed into DeFi via wallets controlled by the customer; customers in New York are not currently included. The Defiant reports that the amount of USDC borrowed on Arc from the cirBTC market has risen from $1.37 million as of September 17 to about $14.3 million.
This route turns BTC into a source of on-chain liquidity that institutions can tap, but it also increases reliance on wrapped assets, lending protocols, and liquidation mechanisms. For everyday users, it is still an institutional-account product rather than a universal BTC credit entry point for all wallets.
#BTC #USDC
Circle has enabled digital-asset collateralized borrowing for Circle Mint institutional customers. Customers deposit BTC into Circle custody, mint cirBTC supported 1:1 by BTC, and then borrow USDC through lending markets such as Arc or Morpho on Ethereum. The borrowed USDC goes directly into the Circle Mint balance, so institutions do not need to sell BTC first.
This is not Circle lending directly: interest rates, collateral requirements, and liquidation thresholds are determined by third-party markets. The collateral is routed into DeFi via wallets controlled by the customer; customers in New York are not currently included. The Defiant reports that the amount of USDC borrowed on Arc from the cirBTC market has risen from $1.37 million as of September 17 to about $14.3 million.
This route turns BTC into a source of on-chain liquidity that institutions can tap, but it also increases reliance on wrapped assets, lending protocols, and liquidation mechanisms. For everyday users, it is still an institutional-account product rather than a universal BTC credit entry point for all wallets.
#BTC #USDC