OctoLend plans to enable Bitcoin as collateral for USDC loans on Stellar by leveraging NEAR's chain abstraction stack, including Chain Signatures for MPC-controlled BTC vaults and Intents for cross-chain proof verification.
OctoLend is designing a system to allow native Bitcoin locked on Bitcoin L1 to serve as collateral for borrowing USDC on Stellar. The architecture uses NEAR's Chain Signatures for MPC-controlled vault management and NEAR Intents for cross-chain state verification. When users deposit BTC, NEAR's Collateral Manager records the lock and emits proof data that a NEAR-to-Stellar relay forwards to Soroban. An External Collateral Module then mints xcBTC tokens reflecting the locked Bitcoin, which OctoLend accepts as collateral for USDC loans priced via BTC/USD oracles. The same architecture can later extend to other native L1 collateral like XRP and LTC.