Ledger has launched a new Crypto Loan feature that lets Bitcoin holders borrow stablecoins without selling their holdings, marking the hardware wallet maker’s deeper push into crypto financial services. Unveiled Wednesday at the TOKEN2049 conference in Singapore, the Ledger bitcoin loans tool allows eligible users to pledge wrapped Bitcoin as collateral in exchange for USDC or USDT, according to Decrypt.
Key takeaways
- Ledger’s new Crypto Loan feature lets users borrow USDC or USDT against wrapped Bitcoin (cbBTC or wBTC).
- Loans are approved and managed through a Ledger hardware signer, not a centralized exchange.
- The decentralized network Morpho and provider Yield.xyz power the lending infrastructure behind the scenes.
- Ledger says it secures almost 30% of all retail-held Bitcoin worldwide.
- A 250-unit Nano Gen5 wallet made with the NBA’s San Antonio Spurs was also announced.
Ledger Debuts Bitcoin-Backed Crypto Loan Feature
The reasoning behind this rollout is straightforward: it lets Bitcoin holders tap into cash reserves without having to sell their assets. By pledging wrapped Bitcoin—either cbBTC or wBTC—as collateral, users can borrow stablecoins right within Ledger’s own platform.
That setup means funds never need to move onto a centralized lending platform. Borrowers can open and manage their position right inside Ledger Wallet, where they can track their loan-to-value ratio, add more collateral, repay early, or borrow additional funds. Every key action still has to be physically approved on a Ledger signer device before it executes.
Integration With Decentralized Lending Networks
Behind the interface, the lending runs through Morpho, the decentralized credit network, using Yield.xyz as the technical provider — the same infrastructure Coinbase uses for its own Bitcoin-backed loans, according to Decrypt.
In a related move, Ledger revealed that signer devices can now connect directly to the Morpho protocol, allowing users to bypass browser extensions and third-party software wallets entirely. According to Morpho co-founder Paul Frambot, the integration produces “a powerful liquidity flywheel,” as stablecoins deposited via Ledger’s existing Earn feature can circle back to finance the loans Bitcoin holders are taking out.
That loop links two of Ledger’s product lines together: depositors earning yield on one side, borrowers tapping liquidity on the other, both running through the same Morpho rails.
Ledger’s Market Position and Additional Announcements
According to Ledger, the company safeguards close to 30% of all Bitcoin owned by individual retail investors.
The company used the same Singapore stage to unveil a limited-edition Nano Gen5 signer made in partnership with the NBA’s San Antonio Spurs. The 250-unit run extends a marketing deal with the Spurs that Ledger announced last year, according to Decrypt.
Crypto Loan began rolling out to eligible users immediately after the announcement, with Ledger saying availability will keep expanding over time.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.