Ledger Launches Self-Custodial Crypto Lending Feature, Enabling Borrowing of Stablecoins Against Wrapped Bitcoin Collateral

On October 7, according to Decrypt, Ledger announced the launch of its self-custodial lending feature "Crypto Loan" at the TOKEN2049 conference in Singapore. Eligible users can borrow stablecoins USDC or USDT via their wallet application using wrapped Bitcoin (cbBTC or wBTC) as collateral, without transferring funds to centralized lending platforms or liquidating the underlying assets.

The lending service is powered by the decentralized credit network Morpho, facilitated by technology provider Yield.xyz. Users can directly manage loans, track the loan-to-value ratio (LTV), add collateral, and repay within the Ledger Wallet, with all critical operations requiring physical signature confirmation on Ledger hardware devices. Additionally, Ledger has implemented direct integration between its hardware devices and Morpho, eliminating the need for browser extension plugins. The feature is currently being rolled out to eligible users, with plans to gradually expand its coverage in the future.