Ledger Launches Bitcoin Loans, Letting Holders Borrow Without Selling

In brief

• Ledger launched Crypto Loan, a self-custodial feature in its wallet app letting eligible users pledge wrapped Bitcoin to borrow USDC or USDT..
• Powered by Morpho via Yield.xyz, it pairs with a new direct-access integration letting Ledger devices connect to Morpho without browser extensions.
• The move deepens Ledger's push into financial services, joining a Bitcoin-lending wave from Coinbase and JPMorgan.

Ledger is giving Bitcoin holders a way to tap cash without parting with their coins, launching a self-custodial lending feature inside its wallet app that keeps final approval on the user's hardware device.

Unveiled Wednesday at the TOKEN2049 conference in Singapore, the new Crypto Loan feature lets eligible users pledge wrapped Bitcoin, in the form of cbBTC or wBTC, as collateral to borrow the stablecoins USDC or USDT.

The pitch is access to liquidity without moving funds onto a centralized lending platform or selling the underlying asset. Users can open and manage loans directly in Ledger Wallet, track their loan-to-value ratio, add collateral, repay or borrow more, with key actions physically approved on a Ledger signer before they execute.

The feature is powered by Morpho, the decentralized credit network, through technical provider Yield.xyz. It’s the same provider Coinbase relies on for its own Bitcoin-backed loans.