Ledger launched Crypto Loan, a self-custodial feature in its wallet app that lets eligible holders borrow USDC or USDT against wrapped Bitcoin without selling it. The feature runs on Morpho through provider Yield.xyz and arrives alongside direct hardware access to Morpho, as Coinbase and JPMorgan also push into Bitcoin-backed lending.
Ledger unveiled Crypto Loan, a self-custodial lending feature inside its wallet app, on Wednesday at the TOKEN2049 conference in Singapore. The tool lets eligible users pledge wrapped Bitcoin, in the form of cbBTC or wBTC, as collateral to borrow the stablecoins USDC or USDT, with key actions requiring physical approval on a Ledger hardware device before they execute.
Users can open and manage loans directly in Ledger Wallet, track the loan-to-value ratio, add collateral, repay the debt, or borrow more. Ledger sets variable interest rates based on utilization in the underlying lending markets, and it warns that liquidation risk applies, describing itself as a technology provider rather than a financial adviser.
Morpho and Yield.xyz power the new lending flow
The feature runs on Morpho, the decentralized credit network, through technical provider Yield.xyz — the same provider Coinbase relies on for its own Bitcoin-backed loans. Ledger also activated direct access letting its hardware signers connect to Morpho without routing through a browser extension or software wallet. That connection became available to all users on Oct. 7.
Morpho co-founder Paul Frambot said the integration creates "a powerful liquidity flywheel", since stablecoins deposited through Ledger's existing Earn product can fund the loans Bitcoin holders now take out.
Ledger joins a growing field of Bitcoin lenders
Coinbase recently rolled out fixed-rate Bitcoin-backed loans after expanding the product to U.K. users, while JPMorgan has explored lending against Bitcoin and Ethereum. The appeal is consistent across these products: holders who expect their crypto to appreciate can borrow against it rather than trigger a taxable sale, but a sharp price drop can force liquidation of the collateral.
Ledger says it secures nearly 30% of all Bitcoin held by retail investors. The company has more than 8 million signers sold across over 165 countries. At the same Singapore event, Ledger unveiled a 250-unit limited-edition Nano Gen5 signer made with the NBA's San Antonio Spurs, priced at €199 each.
Sources: Decrypt, crypto.news
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