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Ledger Unveils Self-Custodial Bitcoin Lending Feature via Morpho Integration

Ledger announced a wallet feature allowing users to borrow stablecoins against wrapped Bitcoin while keeping transaction approvals on hardware devices.

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Hardware wallet maker Ledger announced the launch of Crypto Loan at the TOKEN2049 conference in Singapore. The self-custodial feature allows eligible users to borrow USDC or USDT stablecoins directly within the Ledger Wallet app by pledging wrapped Bitcoin, including cbBTC or wBTC, as collateral.

The lending tool operates through decentralized credit network Morpho and technical provider Yield.xyz, which also supports Coinbase's Bitcoin-backed lending products. Alongside the launch, Ledger introduced a direct connection to Morpho, enabling users to execute transactions without relying on browser extensions or third-party software wallets. Critical operations, such as adding collateral or adjusting loans, require manual verification on the physical device.

Morpho co-founder Paul Frambot stated that the direct integration creates a liquidity cycle, noting that stablecoins deposited via Ledger's Earn product can supply capital for the new Bitcoin-backed loans. The feature marks an expansion into financial services for Ledger as institutions such as Coinbase and JPMorgan expand their lending offerings.

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