Morpho tops $500M in deposits on Circle’s Arc in just over two weeks

More than $500 million has flowed into Morpho on Arc in just over two weeks since the network went live. Arc is Circle’s EVM-compatible Layer-1, and Morpho was wired in as its core credit layer from day one. The numbers behind the milestone Arc’s public mainnet launched on September 16, 2026. Morpho went live the same day, which meant lenders and borrowers could start moving capital immediately. Launch day alone pulled in somewhere between $150 million and $220 million in initial deposits. Most of that landed in USDC and EURC markets, Circle’s dollar and euro stablecoins. By October 2, 2026, total deposits on Morpho’s Arc deployment reached $500.27 million. Outstanding loans stood at $189.93 million on the same date. The activity is far from evenly spread. The cirBTC/USDC market accounted for approximately 86% of lending and borrowing on the platform. cirBTC is Circle’s Bitcoin-backed wrapped token. A cirBTC/USDC market lets someone post Bitcoin exposure as collateral and borrow dollars against it. That market has been running at near-full utilization. Nearly all the USDC lenders have supplied there is already borrowed. Who is actually depositing Deposits were heavily driven by ins...