Ledger adds Morpho-powered Bitcoin loans to its wallet

Ledger launched Crypto Loan on Oct. 7, letting eligible Ledger Wallet users borrow USDC or USDT against wrapped Bitcoin while keeping exposure to the underlying asset. The company announced the feature in its October Ledger Wallet release notes.

The feature brings onchain borrowing into Ledger Wallet while leaving loan terms and collateral risk tied to the underlying lending markets.

Ledger unveiled Crypto Loan at TOKEN2049 Singapore, according to Decrypt’s report on the launch. The service is powered by Morpho and integrated through Yield.xyz. Ledger says the collateral stays on-chain, and that its role is to provide the technology for accessing the service rather than to issue loans or offer financial advice.

Which Bitcoin assets can borrowers pledge?

Crypto Loan accepts Coinbase Wrapped Bitcoin (cbBTC) or Wrapped Bitcoin (wBTC) as collateral, Ledger says. Eligible users can borrow USDC or USDT through the wallet. The feature does not take native Bitcoin directly: borrowers must deposit one of the supported wrapped tokens.

Ledger Wallet lets users check their loan-to-value ratio, add collateral, repay, borrow more or withdraw collateral when eligible. Users can also simulate a loan before committing. Ledger says transactions across the loan process appear in human-readable form on the signer’s Secure Screen and require physical approval on the hardware device. The signer keeps private keys offline; the wallet provides the interface for managing the position.

What determines the loan’s cost and liquidation risk?

Interest rates are variable and depend on utilization in the underlying isolated lending markets, Ledger says. The company also warns that liquidation risk applies. If collateral value falls relative to the debt, the position may face liquidation under the market’s rules; Ledger’s release does not specify a single loan-to-value threshold for all loans.

Availability is subject to country restrictions, and Ledger says access will expand progressively. That means the launch does not make the feature available to every wallet user at once. The company describes in-app monitoring and collateral management as ways to manage a position, but the release does not publish a rate schedule or guarantee that users can avoid liquidation by adding collateral.

How does Crypto Loan connect to Ledger’s other services?

The loan feature sits alongside Ledger Earn, which Ledger says is also powered by Morpho. The company says stablecoins deposited through Earn can fund loans accessed through Crypto Loan. Separately, Ledger added direct access to Morpho, allowing users to connect a signer to the protocol without a browser extension, according to the release.

Sources

• October Ledger Wallet release notes — ledger.com
• Decrypt’s report on the launch — decrypt.co