Circle’s Arc blockchain, launched just three days ago, has seen institutional borrowers pull more than $90 million in USDC against deposits of cirBTC, the chain’s wrapped Bitcoin token. Borrowing volumes grew rapidly from $1.37 million shortly after cirBTC went live on September 21, to $14.3 million within days, then $90 million. The borrowing process relies on the DABB (Digital Asset-Backed Borrowing) mechanism through Morpho Blue, with loan-to-value ratios set by the lending protocol, reaching 86% in one example. Galaxy and Keyrock are the primary liquidity providers, with initial deposits exceeding $150 million in USDC and EURC on launch day.
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