Circle Adds Aave to Bitcoin-Backed Borrowing in Mint

Circle's decision to add Aave alongside Morpho turns its bitcoin-backed borrowing into a multi-protocol offering, which matters because it shifts the competitive dynamic among DeFi lenders competing for institutional-grade collateral. The design keeps liquidation risk with the third-party protocol rather than Circle, so the platform captures fee flow without owning the risk engine — a structure worth watching as more issuers look to plug into existing lending markets. Whether borrowers treat Aave and Morpho as interchangeable, or split by rate and depth, is the open question.