Ledger introduced Crypto Loan at TOKEN2049 in Singapore, giving eligible users a self-custodial way to borrow against wrapped Bitcoin inside Ledger Wallet. The feature allows users to pledge cbBTC or wBTC as collateral and borrow USDC or USDT without moving assets to a centralized lending platform or selling existing holdings.
Loan management stays inside Ledger Wallet
According to Ledger, users can open and manage loans directly in the wallet, monitor loan-to-value ratios, add collateral, repay debt, or increase the borrowed amount. Key actions will only go through after physical confirmation on a Ledger signing device.
Morpho powers the credit layer
The lending feature is supported by decentralized credit network Morpho, while Yield.xyz provides the underlying technology. Ledger also said its signing devices can now connect directly to Morpho, removing the need for browser extensions or software wallets.
Yield.xyz is also the provider behind Coinbase's Bitcoin-backed loan product. Paul Frambot, co-founder of Morpho, said the integration creates a "powerful liquidity flywheel," with stablecoins deposited through Ledger's existing Earn product helping fund current loans for Bitcoin holders.
Broader push into financial services
The launch extends Ledger's move deeper into financial services, an area beyond the hardware wallets it is best known for. The company said it protects nearly 30% of the Bitcoin held by retail investors.
Elsewhere in the market, Coinbase recently launched fixed-rate Bitcoin-backed loans after expanding the product to users in the UK, while JPMorgan is also exploring lending backed by Bitcoin and Ether.
Ledger said Crypto Loan has started rolling out to eligible users, with availability set to widen over time.