Ledger has launched a new "BTC yield" feature within its hardware wallet ecosystem, partnering with Lombard and Figment to provide Bitcoin holders with yield-earning opportunities while maintaining self-custody. The integration allows Ledger wallet users to access Lombard's yield-bearing LBTC token through the Figment application directly within the Ledger Wallet interface.
The feature is currently accessible via the Discover section of the Ledger Wallet app through a Figment-powered decentralized application (dApp). Ledger plans to move this functionality to a native slot in the Earn section later in 2026, deepening its role as a primary access point for Bitcoin DeFi.
The core mechanism involves users depositing Bitcoin, which is converted into LBTC—a liquid token that tracks BTC's price. This LBTC then earns BTC-denominated rewards by participating in securing "Bitcoin secured networks" via the Babylon Bitcoin Staking Protocol. Figment operates validator infrastructure for this process, connecting the different networks involved. Importantly, this mechanism does not involve staking on Bitcoin's base layer, which lacks native staking functionality, but instead uses BTC as economic collateral for other networks.
The partnership represents a distribution-plus-infrastructure arrangement where Ledger provides the user interface and distribution channel, Lombard supplies the yield product (LBTC), and Figment delivers the access infrastructure. This modular approach compresses what would typically be a multi-step process into a guided workflow within the familiar wallet environment, lowering switching costs for users.
According to market data, Babylon Protocol and Lombard have significant total value locked (TVL) at $5.92 billion and $1.04 billion respectively, positioning them as major players in Bitcoin DeFi. Lombard's LBTC currently reports an annual percentage yield (APY) of 0.41%, though this figure may change with different incentives.
The launch highlights growing demand for yield features accessible without leaving wallet environments and could potentially activate more of the estimated 98.5% of Bitcoin that remains idle on-chain. However, Ledger has not yet disclosed key risk-related information including detailed fee schedules, custodial risks, or regional availability specifics. The success of the integration will depend on operational discipline across all three partners, particularly regarding user experience, support coordination, and consistent execution.
