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Circle launches bitcoin-backed loans but German tax rules may trigger taxable events on token swaps

Market News
22 Sep 2026
CryptoTicker
View Source
Neutral
Circle launches bitcoin-backed loans but German tax rules may trigger taxable events on token swaps

Circle introduced Digital Asset-Backed Borrowing on September 21, 2026, allowing institutional clients to use bitcoin as collateral to borrow USDC without selling bitcoin. However, for German investors, converting bitcoin into a wrapped token (cirBTC) for collateral is likely a taxable event that resets the one-year tax-free holding period. This differs from U.S. tax treatment and could result in unexpected tax bills. The loan itself is not taxed unless liquidation occurs, which would be treated as a sale. Retail investors in Germany cannot access this product currently, but the tax implications apply to all wrapped bitcoin holdings, making it important to review transaction histories and tax software treatment carefully.

The story on cirBTC and the holding period is provided here with market context from Pluang's cryptocurrency data. For readers following major cryptocurrencies, 39 out of 50 rose today. VET was priced at Rp162 with a 4.95% increase, XRP at Rp27.622 with a 4.80% increase, and GRT at Rp426 with a 4.69% increase. This data is as of Sep 22, 2026 16:02 WIB.

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