Circle Opens Bitcoin-Backed USDC Borrowing to Mint Clients via Morpho

Circle is effectively outsourcing credit risk while keeping the distribution: it issues the wrapper and wallet, but Morpho sets terms and Galaxy and Keyrock carry the lending exposure. That separation matters because the growth here is supply-driven rather than demand-driven — a handful of market makers are funding nearly the entire book, so the $14.3 million figure reflects a few balance-sheet decisions, not broad borrower appetite. Whether that concentration persists, or new suppliers and borrowers broaden the market, is the open question.