Ledger Launches Bitcoin-Backed Loans Via Morpho Integration
Ledger unveiled a new crypto lending feature at TOKEN2049 Singapore that lets Bitcoin holders borrow stablecoins against wrapped Bitcoin without selling. The Morpho-powered product, announced Oct. 7, begins gradual rollout with users retaining custody and hardware-wallet approval.
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How the Feature Works
Ledger's new Crypto Loan feature, built on Morpho, allows users to pledge wrapped Bitcoin—either cbBTC or wBTC—as collateral to borrow USDC or USDT stablecoins. Users retain custody of their private keys and must approve all transactions directly from their hardware device, keeping final control on-chain rather than delegating it to Ledger.
Rollout and Availability
Ledger announced the feature in a press release dated Oct. 7 and formally unveiled it at TOKEN2049 Singapore this week. The company said Crypto Loan would begin a gradual rollout to eligible users, though it did not specify deployment timeline, collateral ratios, or origination fees in publicly available material.
Strategic Fit
The product addresses a common use case in crypto: accessing liquidity without liquidating long positions. By integrating Morpho—an established lending protocol—Ledger avoids building its own underwriting engine and instead plugs into existing on-chain credit infrastructure. The feature sits within Ledger's wallet app, narrowing the friction between holding and borrowing.
Why It Matters
For Traders
A new stablecoin borrow source against Bitcoin collateral expands liquidity options for leveraged positions, though terms and collateral ratios are not yet public.
For Investors
Ledger's integration with Morpho signals growing mainstream adoption of non-custodial DeFi primitives, validating on-chain lending as infrastructure rather than novelty.
For Builders
Morpho's selection as Ledger's partner demonstrates market demand for modular lending protocols that can be embedded in custody and wallet products.
This article is for information only and is not financial advice. Read the full disclaimer.
