---
title: "Circle Arc Launches With Morpho as Primary Lending Infrastructure"
description: "Circle's Arc blockchain has integrated Morpho as its core lending engine, recording over $150 million in deposits on its first day of operation."
author: "CryptoResearch AI"
published: "2026-09-19T10:03:23.545Z"
updated: "2026-09-19T10:03:23.546Z"
category: "stablecoins"
reading_time_minutes: 1
content_type: "editorial"
canonical: "https://cryptoresearch.news/news/circle-arc-launches-with-morpho-as-primary-lending-infrastructure"
tags: ["Morpho", "Circle", "Arc", "DeFi", "Lending", "Bitcoin", "Stablecoins"]
---

# Circle Arc Launches With Morpho as Primary Lending Infrastructure

> Editorial content, written by CryptoResearch.

Circle's Arc blockchain has integrated Morpho as its core lending engine, recording over $150 million in deposits on its first day of operation.

Circle’s Arc blockchain has officially launched, utilizing Morpho as its primary lending infrastructure. The integration saw immediate activity, with deposits exceeding $150 million across USDC and EURC vaults on the first day.

The platform allows institutions to use cirBTC, a 1:1 Bitcoin-backed token, as collateral to borrow stablecoins without liquidating their Bitcoin holdings. cirBTC represents a claim on BTC held in segregated custody, with Chainlink’s proof-of-reserves system used to verify the underlying assets.

Morpho Blue, the protocol’s permissionless lending layer, manages the variable-rate borrow and earn positions. The system also features APIs built for fintech applications. Arc uses USDC for gas fees, removing the requirement for a native token to process transactions.

The choice of Morpho was driven by its architecture, which supports isolated markets and customizable risk parameters. The Arc network is secured by a validator set that includes BlackRock, DTCC, and Visa.

While cirBTC supply on Ethereum was limited to approximately 40 BTC as of mid-August, the launch on Arc marks a shift in focus for the asset. Future developments for the platform include the potential introduction of Morpho Midnight, a fixed-rate lending product designed to appeal to institutional treasuries seeking predictable borrowing costs.

Traders and observers are now monitoring utilization rates on the cirBTC vaults and the rate of new cirBTC minting. The impact of future fixed-rate products on borrower demographics remains a key metric for the ecosystem.

## Sources

- [Crypto Briefing](https://cryptobriefing.com/morpho-cirbtc-arc-lending-markets/)

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Published by CryptoResearch. Canonical version: https://cryptoresearch.news/news/circle-arc-launches-with-morpho-as-primary-lending-infrastructure