Wire · operational-macro
Circle launches BTC-backed USDC loans for institutions
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Fusion42 · 21 September 2026 · Fusion42 review
Circle has introduced a Bitcoin-backed USDC borrowing service for institutional clients via its Digital Asset-Backed Borrowing product, allowing BTC holders to borrow USDC without selling their Bitcoin. The product operates through the Circle Mint platform and uses third-party DeFi lending markets, with Morpho as the initial supported protocol, excluding New York clients.
This Wire brief sits within Fusion42's coverage of Fintech, and 3 sources have reported it between 21 Sep 2026 and 22 Sep 2026.
◆ ◆ The Wire takeaway
You can now borrow USDC against Bitcoin without selling your BTC, opening liquidity options if you want to hold long-term crypto exposure. This puts pressure on crypto lending providers to offer better rates, as Circle sidesteps setting borrowing costs and relies on third-party markets.
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3 sources · first reported 21 Sep 2026 · latest 22 Sep 2026
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