Circle launched its Digital Asset-Backed Borrowing (DABB) offer on September 21, enabling eligible institutional clients to borrow USDC by using bitcoin as collateral. BTC is tokenized into cirBTC on Ethereum or on Arc, Circle’s blockchain launched on September 16, before being supplied as collateral on a DeFi lending protocol. At launch, the loan goes through Morpho, with Aave and other protocols planned for future integration. The BTC securing the cirBTC is held by Circle National Trust, a federally chartered trust bank supervised by the OCC. This solution allows bitcoin holders to obtain USDC liquidity without selling their BTC, preserving their market exposure to bitcoin.
Source: Read the original article
