5 hours ago
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Key Takeaways
- Circle Mint now supports Bitcoin-backed USDC borrowing.
- Morpho lenders, not Circle, supply the borrowed USDC.
- cirBTC leaves Mint’s regulated account environment.
- Falling Bitcoin prices can trigger liquidation.
- Sponsored gas does not remove lending risks.
Circle provides the route, not the loan
Circle introduced Digital Asset-Backed Borrowing in a September 21 announcement. Eligible Circle Mint LLC customers can deposit Bitcoin, convert it into Circle Wrapped Bitcoin and use that cirBTC as collateral for a USDC loan.
The service is built for institutions rather than individual users, and Circle says it is unavailable in New York.
Although the entire process can be started and managed through Circle Mint, Circle does not lend the USDC. Its current documentation names Morpho ...
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