Circle Launches BTC-Collateralized Lending Service, Initially Connecting to Arc and Ethereum

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Circle Launches Bitcoin-collateralized lending service

BlockBeats reports,September 21, according to official news,Circle announced the launch of digital asset-collateralized lending (Circle Mint LLC) services for eligible DABB customers, currently supporting Arc and the Ethereum mainnet. The service allows customers to deposit BTC and mint Circle Wrapped Bitcoin（cirBTC), then borrow cirBTC using USDC as collateral through supported third-party lending markets. Borrowed funds will be transferred directly to the Circle Mint account, providing liquidity without the need to sell BTC to obtain liquidity.DABB integrates BTC deposits,cirBTC minting, collateralized lending, and USDC settlement into a unified process. Customers can manage collateral themselves and add collateral or repay loans as needed. The service currently supports Morpho-related markets and is expected to expand to more lending markets and third-party platforms. Borrowing rates, collateral requirements, liquidation thresholds, and liquidity are determined by the selected market and may change.

Original link https://m.theblockbeats.info/flash/368259

Key points

Circle announced the launch of a digital-asset-collateralized lending service for eligible Circle Mint LLC customers (DABB).
The service currently supports Arc and Ethereum mainnet.
Customers can deposit BTC and mint Circle Wrapped Bitcoin（cirBTC), then use cirBTC as collateral to borrow USDC。
The borrowed funds will go directly into the Circle Mint account, providing liquidity without having to sell BTC.
The service currently supports Morpho-related markets and is expected to expand to more lending markets and third-party platforms in the future.
Parameters such as borrowing rates, collateral requirements, liquidation thresholds, and liquidity are determined by the selected market and may change.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

Users deposit BTC into the service to receive cirBTC, then use cirBTC it as collateral to borrow USDC, with the funds entering the Circle Mint account.

Why it matters to readers

This provides eligible customers with a way to obtain BTC liquidity without selling USDC.

It is similar to borrowing against digital assets, but the borrowing rate, collateral requirements, and liquidation threshold are determined by the selected market.

Risks and unknowns

The service is available to eligible Circle Mint LLC customers; specific eligibility criteria are not specified.
Borrowing rates, collateral requirements, liquidation thresholds, and liquidity may change.
The timing for subsequent expansion to more lending markets and third-party platforms is not specified.

Circle Launches BTC-Collateralized Lending Service, Initially Connecting to Arc and Ethereum

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