Circle says bitcoin works as collateral but stablecoins must supply liquidity
- —cirBTC is backed 1:1 by native BTC and live on Arc and Ethereum
- —Loans against cirBTC collateral are denominated in USDC on third-party protocols
- —BTC is held via a Bermuda affiliate and custodied by Circle National Trust
- —Reserves are published through Chainlink Proof of Reserve and disclosed BTC addresses
Why it matters: Circle is setting a template for splitting BTC and stablecoin roles in institutional credit, which could accelerate capital flows into onchain lending.
Source: Blockchain.News