Ledger launches Bitcoin-backed lending, allowing users to borrow stablecoins without selling their BTC.

BlockBeats news, October 7th, Ledger announced at the TOKEN2049 conference in Singapore the launch of a Crypto Loan feature, allowing eligible users to use cbBTC or WBTC as collateral to borrow USDC or USDT, obtaining liquidity without selling Bitcoin.

This feature is supported by the decentralized lending protocol Morpho through the technical service provider Yield.xyz. Users can directly create and manage loans within Ledger Wallet, monitor the loan-to-value ratio (LTV), add collateral, repay, or increase borrowing. Key operations still require physical confirmation through the Ledger hardware device, with private keys and final transaction authorization controlled by the users themselves.

Ledger also announced that its hardware devices will support direct connection to Morpho, without the need for browser extensions or software wallets. The company stated that Crypto Loan will be gradually rolled out to eligible users.

This move further drives Ledger's expansion from hardware wallets into the financial services sector. Previously, Coinbase launched Bitcoin-collateralized fixed-rate loans based on Morpho, and JPMorgan is also exploring the use of Bitcoin and Ethereum as loan collateral.