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

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. How the Forex spoke works 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. In the Main spoke, EURC has a 0% collateral factor. Euro deposits there carry no borrowing power at all. The Forex spoke is where EURC becomes useful collateral. A user who holds euro stablecoins can borrow USDC against them and keep their euro exposure intact. Isolating this activity in its own spoke means any trouble with EURC collateral stays contained. The Main spoke does not inherit the currency risk. The numbers so far Data from Aave Tracker and Aavescan as of October 15, 2026, paints a picture of a deep hub and a quiet new route. The Arc Core hub held approximately $294 milli...