Circle has added Aave as a lending option to its Bitcoin-backed borrowing service called Digital Asset-Backed Borrowing (DABB), available to institutional Circle Mint clients. The mechanism involves depositing native Bitcoin, which is minted into cirBTC on a 1:1 basis, used as collateral to borrow USDC on third-party lending protocols. On Morpho, the first protocol used on Arc, approximately $18.86 million had been borrowed by late September 2026 against a liquidity pool of $157.85 million, with an 86% liquidation loan-to-value threshold. New York-based customers are excluded from the service. Circle acts as custodian and token issuer, while lending terms and liquidation procedures are governed by third-party protocols.
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