At the TOKEN2049 conference in Singapore on Wednesday, hardware wallet provider Ledger introduced Crypto Loan, a new self-custodial lending feature inside its wallet app that lets eligible users pledge wrapped Bitcoin as collateral and borrow stablecoins without selling their BTC or moving funds to a centralized lending platform.
The feature supports cbBTC and wBTC as collateral, with borrowers able to receive USDC or USDT. Users can open and manage loans directly in Ledger Wallet, monitor loan-to-value ratios, add collateral, repay or borrow more. Crucially, final approval for key actions is physically confirmed on a Ledger hardware signer, preserving self-custody.
Crypto Loan is powered by decentralized credit network Morpho through technical provider Yield.xyz, the same provider Coinbase uses for its own Bitcoin-backed loans. Ledger also announced direct access for its signers to Morpho, removing the need for browser extensions or software wallets. Morpho co-founder Paul Frambot called the integration “a powerful liquidity flywheel,” noting that stablecoins deposited through Ledger’s existing Earn product can fund the loans Bitcoin holders take out.
The launch places Ledger deeper into financial services and joins a growing Bitcoin-lending trend: Coinbase recently rolled out fixed-rate Bitcoin-backed loans after expanding to U.K. users, while JPMorgan has explored lending against Bitcoin and Ethereum. The appeal is that holders who expect appreciation can borrow rather than create a taxable sale, though sharp price drops can trigger collateral liquidation. Ledger says it secures nearly 30% of all Bitcoin held by retail investors. The company also unveiled a limited-edition 250-unit Nano Gen5 signer with the NBA’s San Antonio Spurs. Crypto Loan is rolling out immediately to eligible users, with availability expanding over time.
