Ledger has introduced a lending feature that allows eligible users to borrow stablecoins against wrapped Bitcoin while keeping control of the transaction approvals on their Ledger hardware device. The product expands the hardware-wallet company’s role in crypto financial services and connects it to the decentralized lending protocol Morpho.
Borrowing Without Selling Bitcoin
The new Crypto Loan feature is being rolled out inside Ledger Wallet. Users can pledge wrapped Bitcoin—either cbBTC or wBTC—as collateral and borrow USDC or USDT, subject to eligibility and the terms of the lending arrangement.
Unlike a sale, borrowing against an asset allows the holder to retain exposure to the Bitcoin-backed collateral. The loan is managed within Ledger’s app, where users can monitor their loan-to-value ratio, add collateral, repay what they owe or increase their borrowing.
Important actions still require physical approval through a Ledger signer before they are executed. That self-custodial design means the user’s hardware device remains central to authorizing transactions, rather than funds being transferred to a centralized lending platform for the company to control.
According to Decrypt, Ledger unveiled the feature at the TOKEN2049 conference in Singapore and said the rollout would begin immediately for eligible users, with availability expanding over time.
Morpho Integration Adds a DeFi Connection
Crypto Loan is powered by Morpho, a decentralized credit network, through technology provider Yield.xyz. Yield.xyz also provides the infrastructure for Coinbase’s Bitcoin-backed lending product, according to the source material.
Ledger separately announced that its signers can connect directly to Morpho. The integration is intended to remove the need to route connections through browser extensions or software wallets when users access the protocol with Ledger hardware.
Morpho co-founder Paul Frambot said the arrangement could create a “powerful liquidity flywheel.” In practical terms, stablecoins deposited through Ledger’s existing Earn product could help finance the loans taken out by Bitcoin holders.
The launch places Ledger alongside a wider group of companies developing ways to lend against digital assets. Coinbase has recently introduced fixed-rate Bitcoin-backed loans and expanded that service to users in the United Kingdom. JPMorgan, meanwhile, has explored lending secured by Bitcoin and Ethereum.
The Main Benefit—and the Main Risk
Bitcoin-backed borrowing is aimed at holders who want access to liquidity without selling their coins. A sale can end an investor’s exposure to future price movements and may have tax consequences, depending on the relevant jurisdiction. A loan preserves the collateral position, but it creates an obligation to repay and maintain sufficient collateral.
If the value of the pledged Bitcoin falls sharply, the collateral can be liquidated under the loan’s terms. Monitoring the loan-to-value ratio is therefore a central part of using the product; Ledger’s app is designed to display that measure and allow users to add collateral.
Ledger says it secures nearly 30% of the Bitcoin held by retail investors. At the Singapore event, it also announced a limited-edition Nano Gen5 signer made with the NBA’s San Antonio Spurs. The run is limited to 250 units and extends a marketing agreement announced last year.
Market Picture
Moneyiar market data at 10:24 a.m. on October 7, 2026, showed Bitcoin at $83,884.21402286, down 2.57% over 24 hours but up 0.15% over seven days. Morpho was $2.5286657956, down 7.22% in 24 hours and 2.53% over seven days.
The same Moneyiar data showed STABLE at $0.0276746898, down 0.56% over 24 hours and 3.27% over seven days, while edgeX was $0.4174102094, down 8.09% and 20.09%, respectively.
