Circle’s Arc blockchain launched Morpho as its primary lending infrastructure, allowing institutions to borrow stablecoins against BTC-backed collateral without selling their holdings. Day-one deposits exceeded $150 million across USDC and EURC vaults, all backed by cirBTC, Circle’s 1:1 Bitcoin-backed wrapped token. Morpho Blue handles the variable-rate earn and borrow positions, while Chainlink’s proof-of-reserves system verifies that the underlying BTC actually exists in custody. Arc’s institutional validators include BlackRock, DTCC, and Visa, and a fixed-rate lending product via Morpho Midnight is reportedly in development to attract traditional finance borrowers.
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