Ledger has launched Crypto Loan, a self-custodial lending feature integrated into its wallet app. The feature, unveiled at TOKEN2049 in Singapore, allows eligible users to pledge wrapped Bitcoin in the form of cbBTC or wBTC as collateral to borrow USDC or USDT stablecoins.
The service is powered by Morpho, a decentralized credit network, through technical provider Yield.xyz. Users can open, manage, and track loans directly within Ledger Wallet, with key actions requiring physical approval on a Ledger hardware device before execution. This design maintains user custody while enabling access to liquidity without selling assets or depositing funds on centralized lending platforms.
Ledger also announced direct access for its hardware signers to Morpho, allowing users to connect their devices to the protocol without routing through browser extensions or software wallets. According to Morpho co-founder Paul Frambot, this integration creates a liquidity mechanism where stablecoins deposited through Ledger's existing Earn product can fund loans taken by Bitcoin holders.
The move aligns Ledger with other major platforms entering Bitcoin lending. Coinbase recently expanded fixed-rate Bitcoin-backed loans to U.K. users, and JPMorgan has explored lending against Bitcoin and Ethereum. The shared appeal across these services is allowing holders who expect appreciation to borrow against their assets rather than trigger taxable sales, though sharp price declines can force collateral liquidation.
Ledger, which manages custody for approximately 30% of Bitcoin held by retail investors, is rolling out Crypto Loan to eligible users immediately, with broader availability expanding over time.
