Morpho becomes Circle's Arc primary lending infrastructure
- —Deposits into USDC and EURC vaults on Arc exceeded $150 million on the first day
- —Collateral is cirBTC — a 1:1 wrapped bitcoin with custodial storage
- —cirBTC issuance on Ethereum is capped at ~40 BTC as of mid-August
- —Arc validators include BlackRock, DTCC and Visa; gas is paid in USDC
Why it matters: Institutional bitcoin-collateralized lending without selling BTC could expand demand for on-chain liquidity and strengthen the Arc, Circle and Morpho link.
Source: Crypto Briefing