circlelaunchesinstitutionalbtcbackedborrowing
Institutions have just received a massive “cheating code” for Bitcoin liquidity 🤯
​If you’ve been tracking the connection between traditional finance and DeFi, then these are the news you’ve been waiting for. Circle (the powerhouse behind USDC) has just rolled out a major liquidity catalyst for Bitcoin: Digital Asset Borrowing Collateralized (DABB).
​Until now, institutions holding large amounts of Bitcoin faced a dilemma: either set it aside and miss the yield, or sell it and miss the upside. Circle fixed that.
​Qualified institutional clients can now:
​Deposit BTC directly with Circle.
​Issue cirBTC (a 1:1 wrapped Bitcoin token, securely held by Circle National Trust).
​Use cirBTC as collateral in DeFi lending markets via third parties to borrow USDC.
​That way, they keep their Bitcoin exposure while unleashing massive stablecoin liquidity.
​ Where does it work?