🏦 CIRCLE LAUNCHES USDC LOAN SERVICE COLLATERALIZED BY BTC
Circle has introduced a new borrowing process that allows eligible institutional customers to access USDC liquidity without having to sell their BTC.
The process works as follows:
1. Send BTC
2. Mint Circle’s wrapped Bitcoin, cirBTC
3. Use cirBTC as collateral
4. Borrow USDC through supported lending markets
5. Receive USDC directly in Circle Mint
The service is deployed on Arbitrum and Ethereum.
Important to note:
This is NOT a native Bitcoin-layer borrowing.
BTC is represented as wrapped cirBTC and used in third-party smart contract lending markets, which may lead to liquidation, liquidity, and smart contract risks.
However, this is still another example of institutional financial infrastructure built around Bitcoin collateral.
Circle has introduced a new borrowing process that allows eligible institutional customers to access USDC liquidity without having to sell their BTC.
The process works as follows:
1. Send BTC
2. Mint Circle’s wrapped Bitcoin, cirBTC
3. Use cirBTC as collateral
4. Borrow USDC through supported lending markets
5. Receive USDC directly in Circle Mint
The service is deployed on Arbitrum and Ethereum.
Important to note:
This is NOT a native Bitcoin-layer borrowing.
BTC is represented as wrapped cirBTC and used in third-party smart contract lending markets, which may lead to liquidation, liquidity, and smart contract risks.
However, this is still another example of institutional financial infrastructure built around Bitcoin collateral.
