Ledger Launches Bitcoin Loans, Letting Holders Borrow Without Selling
Ledger introduced Crypto Loan at TOKEN2049 in Singapore, a self-custodial feature in its wallet app that allows eligible users to pledge wrapped Bitcoin (cbBTC or wBTC) as collateral to borrow USDC or USDT. The borrowing flow is executed with final approval on a user's Ledger hardware signer and is powered by Morpho via technical provider Yield.xyz.
Why It Matters
The feature enables Bitcoin holders to access stablecoin liquidity without transferring custody to a centralized lender or selling their coins, fitting into a broader industry move toward on-chain lending and products that preserve user control of private keys. Ledger's direct integration to Morpho also aims to streamline device-based access to decentralized credit markets.
Key Facts
- Announcement: Unveiled at TOKEN2049 in Singapore
- Product: Crypto Loan, a self-custodial lending feature in Ledger Wallet
- Collateral: Wrapped Bitcoin (cbBTC or wBTC)
- Borrowed assets: USDC or USDT
- Protocol/provider: Morpho via technical provider Yield.xyz
Ledger has launched Crypto Loan, a new self-custodial lending option built into its Ledger Wallet app that lets eligible users borrow stablecoins against wrapped Bitcoin while keeping private keys on their hardware device. Users can open and manage loans—monitoring loan-to-value ratios, adding collateral, and repaying or drawing additional funds—with critical steps requiring physical approval on a Ledger signer before execution.
The lending feature supports cbBTC and wBTC as collateral and offers USDC or USDT as the borrowed assets. It is powered by the decentralized credit network Morpho, with Yield.xyz providing the technical integration; the same provider underpins Coinbase’s Bitcoin-backed lending product. Ledger also released a direct-access integration allowing its hardware signers to connect to Morpho without routing through browser extensions or separate software wallets.
Ledger executives and Morpho’s co-founder framed the integration as creating complementary liquidity flows: stablecoins deposited through Ledger’s existing Earn product can help fund loans taken out by Bitcoin holders. The move positions Ledger further into crypto financial services, joining recent initiatives from Coinbase and explorations by JPMorgan into lending against crypto assets.
Ledger noted it secures nearly 30% of Bitcoin held by retail investors and used the TOKEN2049 stage to reveal a limited-edition Nano Gen5 signer co-branded with the San Antonio Spurs, a 250-unit run extending a prior marketing arrangement. Crypto Loan is beginning a staged rollout to eligible users, with broader availability planned over time.
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