Circle · Bitcoin · Blue Origin · Crypto Briefing
Morpho enables cirBTC deployment on Arc lending markets
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Circle's Arc blockchain taps Morpho as its core lending infrastructure, letting institutions borrow stablecoins against BTC-backed collateral without selling their holdings.
Key facts
- The supply of cirBTC on Ethereum was limited to roughly 40 BTC outstanding as of mid-August, suggesting the real action was always intended to happen on Arc itself rather than on existing chains
- The core idea is straightforward: hold Bitcoin, don’t sell it, and still access liquidity
- Morpho Blue, the protocol’s permissionless lending layer, handles the variable-rate earn and borrow positions
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Summary
Circle’s Arc blockchain went live with Morpho baked in as its primary lending engine, and the results were immediate. The core idea is straightforward: hold Bitcoin, don’t sell it, and still access liquidity. cirBTC represents a claim on actual BTC held in segregated custody, which means holders can deposit it as collateral on Morpho’s lending markets and borrow USDC or EURC against it. Morpho Blue, the protocol’s permissionless lending layer, handles the variable-rate earn and borrow positions. The supply of cirBTC on Ethereum was limited to roughly 40 BTC outstanding as of mid-August, suggesting the real action was always intended to happen on Arc itself rather than on existing chains.