At the TOKEN2049 conference in Singapore, Ledger introduced its self-custody lending feature, Crypto Loan, which allows eligible users to mortgage wrapped Bitcoin (cbBTC or wBTC) within the Ledger Wallet to borrow stablecoins USDC or USDT, without needing to transfer funds to a centralized lending platform or sell their holdings. Users can directly open and manage loans within the wallet, track loan-to-value ratios, add collateral, make repayments, or increase borrowing, with key operations requiring physical confirmation on a Ledger signing device before execution. This feature is supported by the decentralized credit network Morpho, with technology provided by Yield.xyz, which is also the supplier for Coinbase's Bitcoin mortgage loans. Ledger also announced that its signing devices can directly connect to Morpho without the need for browser plugins or software wallets. Morpho co-founder Paul Frambot stated that this integration creates a 'powerful liquidity flywheel,' allowing stablecoins deposited through Ledger's existing Earn products to fund current loans for Bitcoin holders. This move further deepens Ledger's foray into financial services, known for its hardware wallets. Recently, Coinbase launched fixed-rate Bitcoin mortgage loans after expanding to UK users, while JPMorgan is also exploring Bitcoin and Ethereum mortgage lending. Ledger claims it protects nearly 30% of Bitcoin held by retail investors. Crypto Loan has begun a phased rollout to eligible users, with availability set to expand over time.
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