U.S. customers can now borrow USDC using Bitcoin as collateral through a new fixed-rate offering from Coinbase, with the exception of those in New York. The service, powered by Morpho Midnight on the Base network, allows borrowers to lock in rates starting at 5.1% for loans up to $5 million, adding to the platform's current $1.4 billion variable-rate loan book.

Circle Mint similarly opened Bitcoin-backed borrowing for eligible institutions using the cirBTC token on Arc or Ethereum. The cirBTC market on Arc saw borrowed USDC rise to $14.3 million from $1.37 million between Sept. 17 and Sept. 21. Coinbase also released an embeddable Borrow tool for developers to integrate crypto-backed lending positions directly into third-party applications.

Aave enabled USDC deposits from the Base network for early users of its mobile app via a waitlist system. The protocol's V4 deployment on Arc provides borrow rates for USDC and EURC against collateral such as WETH and cirBTC.