Ledger Says Hold My Beer, Now Does Loans 🏦

Ledger unveiled a self-custodial Bitcoin lending feature inside its wallet app on Wednesday at the TOKEN2049 conference in Singapore, allowing eligible users to borrow stablecoins without selling their holdings. The new Crypto Loan feature lets users pledge wrapped Bitcoin in the form of cbBTC or wBTC as collateral to receive USDC or USDT. Loan actions are signed on a Ledger hardware device before execution, and users can track loan-to-value ratios, add collateral, repay, or borrow more directly within Ledger Wallet.

The feature is powered by Morpho, the decentralized credit network, through technical provider Yield.xyz, the same arrangement Coinbase uses for its own Bitcoin-backed loans. In a separate announcement, Ledger said its signers can now connect directly to Morpho, bypassing browser extensions or software wallets. Morpho co-founder Paul Frambot said the integration creates "a powerful liquidity flywheel," with stablecoins deposited through Ledger's Earn product able to fund loans taken out by Bitcoin holders.

The launch lands Ledger in a crowded and fast-growing corner of crypto lending. Coinbase recently rolled out fixed-rate Bitcoin-backed loans after expanding the product to U.K. users, and JPMorgan has explored lending against Bitcoin and Ethereum. The shared appeal is straightforward: holders who expect their crypto to appreciate can borrow against it rather than trigger a taxable sale, with the familiar risk that a sharp price decline can lead to liquidation of the collateral.

Ledger, which says it secures nearly 30% of all Bitcoin held by retail investors, also used the Singapore stage to announce a limited-edition Nano Gen5 signer made with the NBA's San Antonio Spurs, a 250-unit run that extends a marketing deal with the team announced last year. The Crypto Loan feature is rolling out to eligible users immediately, with availability expanding over time, as competition among platforms offering $BTC-backed borrowing continues to intensify.