Circle is giving institutions another way to unlock liquidity from Bitcoin without selling it.

Its new Digital Asset-Backed Borrowing (DABB) service lets eligible Circle Mint customers deposit BTC, receive cirBTC as collateral, and borrow $USDC through supported lending markets.

At launch, Morpho is the supported protocol, with Aave expected to be added later.

The interesting part is the structure: loans are overcollateralized, while borrowing rates, collateral requirements and liquidation thresholds depend on the lending market.

For institutions, this creates a different path: keep BTC exposure while accessing dollar liquidity.

But the risk is important too. If BTC falls enough, collateral requirements can trigger liquidation.

Would you consider borrowing USDC against BTC rather than selling BTC for liquidity?

#BTC☀ $BTC