Ledger Launches Bitcoin-Backed Crypto Loan Through Morpho

Ledger, the hardware wallet maker, has launched a Bitcoin-backed lending feature that lets users borrow stablecoins without selling their holdings, the company announced on October 7.

Called Crypto Loan, the feature runs on the Morpho lending protocol through the integration provider Yield.xyz. Eligible users can deposit wrapped Bitcoin — either Coinbase’s cbBTC or Wrapped Bitcoin (wBTC) — as collateral and borrow the stablecoins USDC or USDT directly inside Ledger Wallet, according to the company’s release notes.

The launch pushes Ledger, best known for its hardware signers, deeper into decentralized finance at a time when borrowing against Bitcoin has become a popular way for long-term holders to access cash without triggering a taxable sale.

How the Crypto Loan Works

Borrowers pledge wrapped Bitcoin and receive stablecoins while their collateral stays on-chain inside Morpho’s smart contracts, rather than sitting on a custodian’s balance sheet. Yield.xyz handles the technical integration natively inside the app Ledger users already have.

Ledger said the feature includes native loan-to-value monitoring and in-app collateral management, letting users supply more collateral, repay, borrow more, or withdraw at any stage. They can also simulate a loan before committing to it.