Aave V4 opens dollar-euro borrowing on Circle’s Arc network

A new Forex spoke lets users borrow USDC against EURC without selling their euro stablecoins, though early activity remains small Aave V4 now lets users on Circle’s Arc network borrow dollars against euros without selling the euros first. The feature lives in a dedicated Forex spoke, where EURC can be posted as collateral to borrow USDC . Aave V4 went live on Arc around September 16, 2026. It launched with a lineup of assets that includes USDC, EURC, cirBTC, and WETH. The protocol uses a hub-and-spoke design. On Arc, the hub is called the Core Liquidity Hub. The Forex spoke draws liquidity from that hub, so euro holders can tap the same pool of dollars everyone else uses. The key detail is risk separation.

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