Key highlights:
- Ledger has launched Bitcoin-backed loans, allowing eligible users to borrow USDC or USDT against cbBTC and wBTC without selling their Bitcoin
- The product is powered by Morpho and integrated through Yield.xyz, bringing onchain lending directly into Ledger Wallet
- Users keep control through Ledger’s self-custody setup, but the loans still carry risks including liquidation, interest costs, and smart-contract exposure
Ledger has launched a
The model gives Bitcoin holders access to liquidity without forcing them to exit their BTC position. That could make the product particularly useful for investors who want to fund expenses or other investments while maintaining exposure to Bitcoin.
Per the announcement, Ledger is positioning the product around self-custody rather than handing Bitcoin to a centralized lender.
The collateral interacts with onchain lending infrastructure, while users continue to approve transactions through their Ledger device. Ledger’s Clear Signing feature is also designed to show users what they are approving before a transaction is signed.
Typically, borrowing against crypto carries liquidation risk. If the value of the collateral falls far enough, borrowers may need to add more collateral or face liquidation of their position.
Ledger is therefore putting the lending functionality inside an environment where users already manage their private keys, while relying on third-party infrastructure to provide the actual lending service.
Launch expands Ledger beyond crypto custody
Ledger first signaled plans for crypto-backed loans earlier this year as it began turning Ledger Wallet into a broader financial platform.
The Bitcoin loan launch follows the company’s expansion into services that allow users to do more with assets held through its ecosystem rather than simply store them.
The service is not available in every jurisdiction, and Ledger notes that lending services are provided by third-party providers rather than Ledger itself. Users also remain exposed to the risks associated with collateralized crypto lending, including interest costs, smart-contract risk, and liquidation.
Last year, Ledger announced the launch of a feature allowing users to generate revenue from stablecoins directly from self-storage mode. Leaning on a partnership with DeFi platform Kiln, Ledger users can earn 6.6% APY on USDC, USDT, USDS, and DAI stablecoins across several protocols.
Source:: Ledger Launches Bitcoin Loans for Users Who Want Cash Without Selling Their Holdings