Circle has made its Digital Asset-Backed Borrowing service available to eligible Circle Mint LLC customers, enabling them to deposit Bitcoin, mint cirBTC and borrow USDC through supported third-party lending markets on Arc or Ethereum. Morpho is the first supported protocol, while Circle says Aave is expected to join later. Customers move minted cirBTC to a user-controlled Smart Wallet, post it as collateral and receive borrowed USDC in their Circle Mint balance. Circle provides the interface and wallet technology but neither extends credit nor controls lending rates, collateral requirements, liquidity or liquidations. Positions are overcollateralized, New York customers are excluded, and assets transferred to the Smart Wallet leave the regulated Circle Mint custody environment. On Sept. 22, Morpho's Arc cirBTC-USDC market showed $18.86 million borrowed, $157.85 million of available liquidity, $176.71 million in total size and 10.67% utilization. Its liquidation loan-to-value threshold was 86%. Circle reported 948.7508 cirBTC outstanding against 951.2586 BTC in reserves, valued at roughly $77.19 million. Borrowing had increased from $14.13 million the previous day, when available liquidity was $162.85 million and utilization was 7.98%. Each cirBTC is backed 1:1 by native Bitcoin, with onchain-verifiable reserves safeguarded through Circle National Trust. Circle International Bermuda Limited issues the token under regulation by the Bermuda Monetary Authority. The service gives treasury teams a route to dollar liquidity while retaining Bitcoin exposure, but borrowers remain responsible for monitoring collateral values, interest costs, oracle readings and changing protocol parameters.