Ledger Launches Bitcoin Loans for Holders to Borrow Without Selling

Ledger has launched a self-custodial lending feature in its wallet app, allowing Bitcoin holders to borrow without selling their coins. Announced at the TOKEN2049 conference in Singapore, the Crypto Loan feature enables eligible users to pledge wrapped Bitcoin, such as cbBTC or wBTC, as collateral to borrow stablecoins USDC or USDT. Users can manage loans directly in Ledger Wallet, track their loan-to-value ratio, and perform key actions with approval on a Ledger signer. The feature is powered by Morpho, a decentralized credit network, through Yield.xyz, the same provider used by Coinbase for Bitcoin-backed loans. Ledger also announced direct access for its signers to Morpho, allowing users to connect their hardware device without using browser extensions or software wallets. This integration is expected to enhance liquidity, as stablecoins deposited through Ledger's Earn product can fund the loans. Ledger, known for its hardware wallets, is expanding into financial services. The Crypto Loan feature is rolling out to eligible users immediately, with broader availability planned. Ledger claims to secure nearly 30% of all Bitcoin held by retail investors.

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