TL;DR
- Ledger launched Crypto Loan, a self-custody lending feature that allows users to pledge Wrapped Bitcoin to obtain USDC or USDT.
- The tool operates through Morpho via Yield.xyz, the same provider Coinbase uses for its Bitcoin-backed loans.
- Ledger claims to custody around 30% of all Bitcoin held by retail investors globally.
Ledger appeared at TOKEN2049 Singapore and announced a new feature called Crypto Loan, integrated directly into its wallet app and designed to let Bitcoin holders access liquidity without needing to sell their assets.
This new functionality allows eligible users to pledge Wrapped Bitcoin, either in cbBTC or wBTC format, as collateral to borrow stablecoins such as USDC or USDT.
The differentiator the company proposes over other market solutions is that final approval of each transaction remains on the user’s physical device. Key actions must be manually confirmed on the hardware, which preserves the self-custody scheme that defines Ledger’s product. From the app, users can open loans, monitor their loan-to-value ratio, add collateral or repay balances without relinquishing control of their private keys.
This feature is powered by Morpho, the decentralized credit network, through the technical provider Yield.xyz. Morpho co-founder Paul Frambot described the integration as a “powerful liquidity flywheel“, since stablecoins deposited through Ledger’s Earn product can directly fund the loans taken out by other users.
Ledger and Morpho: a Decentralized Liquidity Ecosystem
The company also announced direct access from its devices to the Morpho protocol, removing the need to rely on browser extensions or software wallets as intermediaries.
Coinbase recently launched fixed-rate Bitcoin loans targeting United Kingdom users, and JPMorgan has explored credit lines secured by Bitcoin and Ethereum. The logic behind these initiatives is consistent: those who expect their assets to appreciate prefer to borrow rather than execute a sale that triggers a taxable event. The risk, equally well known, is the forced liquidation of collateral during sharp price drops.
Ledger claims to custody around 30% of Bitcoin held by retail investors. The firm also used the event to present a limited edition of 250 units of its Nano Gen5 in collaboration with the San Antonio Spurs of the NBA.
Crypto Loan is already available for eligible users, with availability to be expanded progressively.
