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.
Self-Custody and Clear Signing
Every key step in the loan lifecycle requires physical approval on a Ledger signer. The company’s Clear Signing feature translates contract functions into plain language on the device’s Secure Screen, so users verify exactly what they approve.
Private keys are generated and locked inside the signer’s Secure Element and never leave the device, separating Ledger’s approach from exchange-based lending where a third party holds the collateral. That offline-key design runs across the lineup, including the Ledger Nano X.
What the DeFi Push Means
The loan is Ledger’s latest step into on-chain finance, following earlier integrations that connected its self-custody ecosystem to Bitcoin DeFi. Direct access to Morpho also lets hardware-wallet users deposit, borrow, and earn across Ethereum and major layer-2 networks.
Ledger said it acts only as a technology provider and does not give financial advice, and that variable interest rates, liquidation risks, and country availability apply. The feature is rolling out gradually to eligible Ledger Wallet users.